Airline stocks rise as easyJet sees 250% bump in bookings
Airline stocks were buoyed on Tuesday morning, recovering from yesterday’s losses, as EasyJet announced it had seen summer bookings surge 250% from last year.
IAG (IAG.L) reversed losses, to trade nearly 1.9% higher by 9.15am in London, before dipping back down to trade 0.8% higher. Ryanair (RYA.L) was also more than 1% up after the opening bell, maintaining gains of around 1% by 9.45am. Meanwhile easyJet (EZJ.L) was flying as much as 5.3% higher on investor optimism.
On Monday, share prices had taken another hit as the market reacted to the news released over the weekend that the government would close travel corridors from 4am from the start of the week.
A negative COVID-19 test is now required for anyone entering the country. Tests must be taken in the three days before travelling and anyone arriving without one could face a fine of up to £500 ($676).
The hit is the latest in a series of challenges for the travel sector over the past year. The COVID-19 pandemic all but halted travel in March 2020 as widespread lockdowns kicked in to try to contain the spread of the virus.
The new measures will be in place until at least 15 February as ministers deal with a new variant identified in Brazil. The decision to close borders comes nearly a year after the coronavirus was first found in Britain.
This, however, has not put off consumers booking holidays.
EasyJet CEO Johan Lundgren told the BBC: "We know that people want to go on holiday as soon as they can," adding that it brings confidence for a post-COVID-19 travel revival. He said that May was proving to be the most popular month for holidays
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"We know there is pent up demand - we have seen that every time restrictions have been relaxed, and so we know that people want to go on holiday as soon as they can," Lundgren said on Monday.
The latest data from the International Air Transport Association (IATA) revealed airlines will need another $70-$80bn (£52-£59bn) cash injection in order to get them through the coronavirus crisis.
On Sunday, the UK government said it will move to help support airports amid new curbs to travel regulations in the UK.
The moves came following warnings from groups in the aviation sector that businesses risk collapse under another long travel curb.
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