MARKET REPORT: The much-needed boost for airlines as the government lifts quarantine rules for visitors who have received two shots in the US or Europe
Airlines got a much-needed boost when the government lifted quarantine rules for visitors who have received two shots in the US or Europe.
The decision – widely anticipated – marked another milestone moment for the travel industry after weeks of advocating for relaxation of the rules.
It only applies to people from amber-listed countries entering England for the time being.
Elevator: The decision – widely anticipated – was another milestone moment for the travel industry after weeks of advocating easing the rules
There’s a chance it will be less of a salvo than it appears at first glance – and from August 2, there will be relatively little summer left for people to book anything other than last-minute vacations, with many having already opted for staycations .
Britons are still not allowed to enter the US if they have been to the UK, Ireland or the Schengen zone within 14 days of arriving. And the rapid spread of the Delta variant over much of the world could, in the worst case scenario, force other countries to close their own borders.
But it was nonetheless hailed by business leaders and the industry as a significant advance. Willie Walsh, the former boss of British Airways owner IAG and director-general of the International Air Transport Association, said it was a “positive, logical and long-awaited development” that “will enhance the ability of companies to operate in global markets.” to recover’. it will help save livelihoods in the travel and tourism sector’.
Airline shares were all up, IAG rose 3.8 percent or 6.6 pence to 181.92 pence, Easyjet rose 4.6 percent or 39.4 pence to 888.8 pence, Ryanair rose 1.7 percent or 0.29 cents to €16.98 and Jet 2 up 2.6 percent or 32.5 pence to 1275 pence, while cruise group Carnival climbed 1.4 percent or 20.8 pence to 1486.8 pence as the government also said international cruises from England could restart. Wizz Air, Hungary’s budget airline, rose 8 percent, or 371p, to 5030p, as it said in a first quarter update it would carry the same number of passengers in August as it did before the pandemic.
It will run 100 per cent of its pre-Covid levels, despite losing £97 million between April and June.
Wizz’s focus on Eastern Europe means it has been affected far less than many of its peers who have a greater reliance on the UK – and as a result has been able to expand its flight paths.
The changes to the quarantine rule have also lifted a host of other stocks related to the travel industry. WH Smith, who earns much of his money from shops at airports and train stations, rose 1.1 percent or 17.5 pence to 1683.5 pence, Upper Crust owner’s SSP rose 6.7 percent or 17 pence to 269.7 pence and engineer Rolls-Royce closed 3.5 percent, or 3.43p, to 101.7p.
The cheers among travel stocks helped boost both major London indices, with the FTSE 100 adding 0.3 percent or 20.55 points to 7016.63, while the FTSE 250 rose 0.6 percent or 129.44 points to 23006.45 . Traders and analysts were also having a great day for corporate earnings and updates. Asset manager St James’s Place (+6.6 percent or 99.62p to 1607.62p) and the world’s largest publicly traded hedge fund Man Group (2.1 percent or 4.1p to 195.55p) posted gains on the Footsie.
Man reported blowout figures showing it made a tenfold gain in performance fees – a key measure of success – in the six months to June, reaching a record level of assets under management, now at £97 billion. St James’s Place also had a record amount under management at the end of the first half, at £144 billion.
British American Tobacco said sales of its non-cigarette products such as e-cigarettes and heated tobacco devices were up 50 percent in the first half.
Revenue over the six months rose 8.1 percent to £12.2 billion. But backers were unimpressed, with shares falling 1.3 percent or 36.5 pence to 2,734 pence.
Mexico-focused miner Fresnillo was the Footsie’s biggest gainer after beating forecasts for gold and silver production. Shares rose 6.9 percent, or 52.4p, to 806.4p on the update.