5 FTSE travel stocks reeling under pressure with the rise in Covid cases

Summary

  • Global indices were down on concerns regarding the resurgence of Covid-19, high inflation, and high commodity prices.
  • Stocks like Carnival, TUI, among others, are trading at discount despite the UK removing all restrictions.

EasyJet’s (LON: EZJ) drubbing at the stock market on 19 July wasn’t a one-off case. Markets across the world bled, slipping in red due to concerns regarding the resurgence of Covid-19, high inflation, and high commodity prices. The travel and tourism sector was the worst hit, with the majority of the stocks slipping in the red territory.

 As England marked the end of curbs related to Covid-19 on 19 July, fear of rising infection rates in summer sent jitters across stocks from the travel and tourism sector. FTSE 350 travel and leisure index fell 3.6 per cent on Monday to reach its lowest since 23 November. Companies who were expected to benefit the most from the reopening ended up as the biggest losers for the day.

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Here are 5 FTSE listed travel stocks that are reeling under pressure for last some time due to rise in Covid cases:

Carnival Plc (LON: CCL)

Shares of the British-American cruise operator have a one-year return of 29.46 per cent and a market capitalisation of £2,381.89 million. The shares have a dividend yield of 2.98 per cent. The shares are trading at GBX 1,309 on 20 July 2021, near their six months low level of GBX 1,283 (21 January 2021).

The company recently announced that in September, three of its ships would be resuming guest operations and another four would resume operations in October. This would take the total number of ships to 15. It also said that it would continue to operate all its ships as vaccinated cruises throughout October at least.

Jet2 Plc (LON: JET2)

Shares of the British airline company have a one-year return of 51.24 per cent and a market capitalisation of £2,240.02 million. The shares were trading at GBX 1,043 on 20 July 2021.

For the year ended 31 March 2021, the company’s revenue fell 89 per cent to £395.4 million from £3,584.7 million a year ago. It made a £341.3 million loss before taxation compared to a profit of £152.2 million a year ago. The company had a total cash balance of £1,379 million compared to £1,387.5 million a year ago.

TUI AG (LON: TUI)

The German travel and tourism company’s shares have a one-year return of 40.22 per cent and a year-to-date return of 11.10 per cent. The shares have a market capitalisation of £3,393.83 million. The shares were trading at GBX 318.

For the half year ended 31 March 2021, the company’s revenue fell 89.2 per cent to £716.3 million from £6,638.7 million in the same period a year ago. Group loss increased 83.8 per cent to £1,498.1 million from a loss of £815 million a year ago.

Rolls Royce Holdings (LON: RR.)

The shares of the aerospace and defence company have a market capitalisation of £7,279.81 million. The shares were trading at GBX 89.08, near their five months low.

The company’s revenue for 2020 fell to £11,824 million from £16,587 million a year ago. Its operating loss increased to £2,081 million from a loss of £852 million. Its loss for the period increased to £3,169 million from £1,311 million a year ago.

Trainline Plc (LON: TRN)

Shares of the world’s leading rail and coach travel portal have a market capitalisation of £1,376.67 million. The shares were trading at GBX 285.

For the first quarter of FY22, the company’s total UK ticket sales increased 305 per cent to £270 million from £67 million in the same period a year ago. International ticket sales were up 432 per cent to £63 million from £12 million.


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