Another £800m wiped from value of travel firms

An easyJet plane
An easyJet plane (PA Wire)
17:57pm, Fri 04 Jun 2021
CBAD8A00-D2B9-4E0E-ADDF-D0366C357A34 Created with sketchtool. E9A4AA46-7DC3-48B8-9CE2-D75274FB8967 Created with sketchtool. 65CCAE04-4748-4D0F-8696-A91D8EB3E7DC Created with sketchtool.

Another £800 million was wiped off the value of UK-listed firms in the travel industry as the sector continues to reel from the changes to Government travel advice.

EasyJet, Ryanair, British Airways owner IAG, Wizz Air and engine maker Rolls-Royce all saw their shares fall for a second consecutive day. Tui shares closed the day flat.

On Thursday £2 billion was wiped off the value of shares in those companies as investors reacted to the news that no new countries would be added to the Government’s green list of travel destinations and that Portugal would be removed.

But the prospect of restrictions easing more slowly than many had hoped gave investors in online supermarket Ocado and takeaway business Just Eat a boost, with shares in both enjoying a strong surge.

Ryanair shares fell 1.3% – knocking £208 million off its value; IAG lost 0.9% – shaving £91.5 million off; easyJet shares closed down 2.6% – removing £115 million; Wizz Air lost 3.3% – worth £157 million and Rolls-Royce was down 2.15% – losing £197 million. In total, around £768.5 million in value was lost from the firms.

All suffered even heavier falls on Thursday, including a 5.4% fall at IAG; a 4.5% drop at Ryanair; a 5.1% fall for easyJet; a 3.8% fall at Wizz Air; a 4.5% fall at Tui and 2.3% drop for Rolls-Royce.

Sophie Griffiths, market analyst at OANDA, said: “Sector-wise, airlines are under pressure after the UK added seven more countries to the red list and removed Portugal from the green list.

“The move by the British Government raises doubts over the possibility of a strong summer recovery in international travel.”

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