Airline stock prices plummeted as new Covid variants trigger travel restrictions

After the United Kingdom imposed travel restrictions on southern African countries, airline stock prices plummeted on Friday, and the European Union said it was prepared to take the same action after the discovery of a new variant of the coronavirus.

British Airways owner International Airlines Group fell as much as 20% in early trading, EasyJet fell 17% and Lufthansa fell 12%.

The sell-off spread to the entire travel industry, with French hotel group Accor’s share price falling 8%, and InterContinental Hotels Group’s share price falling 7%.

Britain added six countries to its red list late on Thursday Travel restrictions -South Africa, Botswana, Namibia, Zimbabwe, Lesotho and Eswatini-and the European Union has stated that it will ban travelers from this region.

With the return of international travel restrictions, scientists are expressing growing concern about the surge in cases of the severely mutated coronavirus variant B.1.1.529 Sars-Cov-2 because of concerns about its ability to evade vaccines and Faster transmission speed Variant than Delta.

Aviation and other travel stocks have been under pressure this month, after several European governments introduced new local lockdown regulations after a wave of infections caused by the leading Delta Air Lines.

However, the prospect of resuming widespread restrictions on international travel has brought new concerns to an industry that has achieved a fragile recovery in the past six months.

The sharp fall in stock prices on Friday caused several major airlines, including IAG and EasyJet, to their lowest levels since the introduction of the Covid vaccine at the end of last year and the reopening of international travel.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *