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Airline stock prices fall when new Covid variants impose a travel ban

Airline stocks fell on Friday after the UK introduced restrictions on travel to southern African countries and showed that the EU was preparing to do the same following the discovery of a new coronavirus variant. ..

British Airways owner International Airlines Group fell 20% in early transactions, while EasyJet fell 17% and Lufthansa fell 12%.

The French hotel group Accor’s share fell 8%, the Intercontinental Hotels Group’s share fell 7%, and sales spread to a wider travel sector.

Britain put six countries on the Red List late Thursday Travel restrictions — South Africa, Botswana, Namibia, Zimbabwe, Lesotho, Eswatini — The EU has announced that it will ban travelers from this region.

International travel ban as scientists expressed concern about the surge in cases of the highly mutated coronavirus variant B.1.1.529 Sars-Cov-2 in concerns about their ability to evade vaccines The decree has been resurrected. Send faster From the delta variant.

Following a wave of infections from major delta variants, airlines and other travel stocks were already under pressure this month after several European governments introduced new local lockdown rules.

However, the prospect of returning to widespread restrictions on international travel raises new concerns for sectors that have enjoyed a fragile recovery over the past six months.

The sharp drop in stock prices on Friday has settled some major airlines, including IAG and easyJet, to their lowest levels since the introduction of the Covid vaccine reopened the road to international travel at the end of last year.

Airline stock prices fall when new Covid variants impose a travel ban

Source link Airline stock prices fall when new Covid variants impose a travel ban

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