Get 40% Off
💎 WSM is up +52.1% since our AI picked it in December! Unlock all premium stock picksUnlock now

Travel and leisure stocks rejoice on summer holiday hopes

Published 05/26/2020, 06:26 AM
Updated 05/26/2020, 07:45 AM
© Reuters. The TUI logo is displayed on a computer screen in London

© Reuters. The TUI logo is displayed on a computer screen in London

LONDON (Reuters) - European travel and leisure stocks soared on Tuesday amid reports Spain and Germany would ease travel restrictions, and no noticeable increase in infections were reported during the re-opening of businesses after a two-month lockdown.

Travel and leisure were among the businesses hardest hit by coronaries lockdown as countries closed borders, leaving airlines grounded, and strict social-distancing rules closed restaurants, cinemas and pubs.

But Germany and Spain's plan to ease travel restriction for the peak summer holiday season revived their stocks. TUI (L:TUIT), British Airways owner IAG (L:ICAG), easyJet (L:EZJ) and Whitbread (L:WTB) shares jumped 15% to 30%, driving London stock indices higher.

London stocks were top gainers as they played catch-up with continental European stocks, which soared on Monday. The travel and leisure stocks sub-index jumped to its highest levels since April 30.

"There is a lot more hope that travel restrictions across Europe will be eased in time for the summer holidays," said Neil Wilson, chief market analyst at Markets.com. "If the summer holiday season can be saved, it would be a big plus after most of us wrote it off."

For a graphic on travel stocks during virus outbreak, click: https://fingfx.thomsonreuters.com/gfx/buzz/qzjpqjkblvx/Pasted%20image%201590488703064.png

European airport operators Fraport (DE:FRAG), Aeroports de Paris (PA:ADP) and Aena (MC:AENA) were rising 5% to 10%.

The German government wants to end a travel warning for tourist trips to 31 European countries from June 15 if the coronavirus situation allows, the dpa new agency reported, according to the magazine Focus. Spain urged foreign holiday-makers to return from July.

Pub operator Mitchells & Butlers (L:MAB) and Cineworld (L:CINE) shares jumped more than 20% on re-opening hopes after UK Prime Minister Boris Johnson said thousands of shops would re-open next month in easing of coronavirus lockdown.

© Reuters. The TUI logo is displayed on a computer screen in London

(The story is refiled to fix typo in TUI, in third paragraph.)

Latest comments

So now we're at buy the hope sell the fact
Hope and more hopes... that's heart touching
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.