Travel stocks brush off possible delays in reopening of non-essential travel

Pre-open Market Report
06:14, 6th April 2021

(Sharecast News) - London-listed travel stocks were taking news that the UK's planned lifting of restrictions on non-essential travel could be pushed back in their stride.

The day before, the Prime Minister warned that rising numbers of Covid-19 infections across the Continent might warrant postponing the loosening of travel curbs scheduled for 17 May.

However, Johnson did also say he hoped that would not be necessary.

"But I do not wish to give hostages to fortune or to underestimate the difficulties we're seeing in some of the destination countries people might want to go to," Johnson said at a press conference on Monday.

"We don't want to see the virus being re-imported into this country from abroad."

Plans to reopen restaurants, pubs and shops in England on the other hand would go ahead as expected, Boris Johnson added.

A government task force on global travel was due to publish details of the so-called 'traffic -light' system that would be used to grant or deny travel to and from countries.

It was expected to take into consideration multiple factors, including levels of virus infections and vaccination levels with the actual decisions on restrictions to be adopted on the basis of the evidence available closer to the time.

Travellers to and from countries on the red and amber lists would be subject to quarantine and self-isolation rules.

Those from countries on the green list would need to take virus tests before arrival and departure.

Airlines were however reportedly unimpressed by the new measures, arguing that the new rules remained unclear and that excessive regulations would hamper travel to even low-risk destinations.

They also warned of the financial impact on the sector that a second lost summer season might have.

As of 0834 GMT, shares of IAG were climbing 3.13% to 216.1p, alongside a similar rise in those of TUI AG.

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

Login or register to post comments

Recent Articles