Travel shares slide as Britons warned not to book foreign holidays | Travel & leisure
Shares in travel and aviation companies, including British Airways owner IAG, easyJet and engine maker Rolls-Royce, fell in early trading after the government warned the public not to book holidays abroad this summer.
Investors feared the airline and travel racing sectors could face another summer of missed bookings as continental Europe struggles to develop vaccine programs.
Shares of IAG, easyJet, Ryanair, holiday package maker Tui and airline Jet2 fell as much as 7% in early trading on Monday. Rolls-Royce fell 3%.
The negative outlook eliminates some of the strong gains made in travel-related businesses as the government announced its “cautious but irreversible” roadmap since closing on February 22nd.
While pandemic restrictions mean holidays abroad are banned, according to Boris Johnson’s roadmap, the government had previously said it could only resume on May 17.
However, after weekend warnings from science experts that allowing summer vacations could risk another lock-up, ministers tipped the TV interviews more closely on Monday morning, sparking sales in the aviation and travel sectors.
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“My advice to anyone right now is to just delay booking international travel,” Social Welfare Minister Eleni Willie told the BBC. “It’s just too early to book an international holiday right now.”
Last week, the UK reached the milestone of half of all adults receiving at least one dose of the Covid-19 vaccine. However, much of Europe is still struggling with the pandemic, which is hampered by the slow development of vaccine programs, rising infection rates and the impact of new strains.
Mark Manduca, an airline analyst at Citigroup, said he had identified an “increased level of fatigue among key investors” whose hopes for recovery have resulted in the recent recovery in airline stocks. “The current speed recovery, the recovery of all things, is now starting to subside and run,” he said.