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Summary
- Airlines companies having US-UK operations demanded the lifting of Covid-19-related restrictions to trans-Atlantic travel.
- The companies have cited higher vaccination rates and low rates of transmission on flights for resuming flights.
- US since 2020 March had barred all non-US citizens from entering the country if they visited the United Kingdom.
As the summer holiday season has begun without packed flights between the US and the UK, bosses of passenger airlines companies that have flights between these two countries have called for the lifting of Covid-19-related restrictions to trans-Atlantic travel. The companies have cited higher vaccination rates and low rates of transmission on flights to press the premiers of both countries to take action at the G7 summit this week in England.
CEOs of International Consolidated Airlines-owned British Airways, Delta Air Lines, American Airlines, JetBlue Airways Corp, and United Airlines said in a rare joint appearance at a press conference.
US travellers are not allowed to visit London without having followed quarantine rules for 10 days, and UK travellers cannot travel to the US as it has put a ban on foreign travellers since the pandemic began.
The push came right ahead of meetings scheduled between British prime minister Boris Johnson and US president Joe Biden at the G7 summit at Cornwall in England.
Sean Doyle, CEO British Airways, said that Heathrow’s second runway was closed on Monday, and the airport’s last such limited flights were during World War II. Heathrow Airport’s CEO Holland-Kaye said that an agreement necessary for both the countries and that trade and employment were at stake.
The US since 2020 March had barred all non-US citizens from entering the country if they visited the United Kingdom anytime.
Lifting of restrictions is more important for British airlines Virgin Atlantic and British Airways, who have not benefitted from a recovering domestic market, unlike their US counterparts.
Here is a look at how three other travel stocks reacted to the news:
Ryanair Holdings (LON:RYA)
The shares of this low-cost airline were up 0.33 per cent and were trading at EUR 16.51 with a market capitalisation of £15,648.86 million on 8 June at 13:04 GST+1.
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The company reported a full year loss of €815 million compared to a profit of €1,002 million a year ago. Its FY21 air traffic was down 81 per cent from 149 million to 27.5 million because of Covid-19 restrictions. The company said that for FY22 it expects an improved cost base and a robust balance sheet.
International Consolidated Airlines Group (LON:IAG)
The shares of the British Airways’ parent company were down 1.12 per cent and were trading at GBX 199.54. It had a market capitalisation of £10,010.05 million on 8 June at 13:04 GST+1.
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For the first quarter of 2021, the company’s passenger revenue was down 88.4 per cent to €459 million from €3,953 million in the same period a year ago. Its loss after tax was lower by 36.6 per cent to €1,067 million from a loss of €1,683 million.
Easyjet Plc (LON:EZJ)
The company’s shares were up 0.69 per cent and were trading at GBX 969.8 with a market capitalisation of £4,399.41 million on 8 June at 13:04 GST+1.
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For the six months ended 31 March 2021, the total revenue of the company fell by 90 per cent to £240 million compared to £2,382 million in the same period a year ago. Passenger numbers fell by 89.4 per cent to 4.1 million compared to 38.6 million in the same period a year ago. Its reported loss before tax was at £645 million compared to a loss of £353 million.
