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Sumamry
- Jet2 Plc announced that its holidays and flights would be delayed to July 1 from June 24.
- Government announced that Portugal would be removed from the green list.
- The company has said customers who had already made bookings could change it free of cost to slot it in the July 1 to July 21 window.
Jet2 Plc (LON:JET2) has announced that its holidays and flights would be delayed to July 1 from the earlier schedule of June 24, as the government announced changes to its travel lists on Thursday.
The company said in a statement that it decided to pushback flights and holidays to July 1 after yesterday’s announcements and said that for destinations currently on the amber list, customers who had already made bookings could change it free of cost to slot it in the July 1 to July 21 window.
Chaos ensued in the travel industry after the government announced that Portugal would be removed from the green list of countries safe to travel because of fear over rising Covid-19 infections and a Nepal mutation of the Delta variant. It has been put on the amber list that is discouraged for travel and on return from the said countries, people have to mandatorily isolate for 10 days. As many as seven countries, including Sri Lanka, Egypt, and Costa Rica have been put on the red list, which has the toughest travel rules.
Jet2holidays and Jet2.com’s CEO Steve Heapy said that the company was aware of the disappointment and frustrations of its travel agency partners as well as customers because of the announcement. He said that the company wants the government to be completely open about data to help the industry and customers understand the logic behind these decisions. Heapy said that though there was no doubt that public health is of utmost importance, UK is grounded about travel while Europe is opening up because data suggested that it is safe to restart travel.
Also read: Travel Stocks to Keep an Eye on As France Restricts Non-Essential Travel from the UK
The shares of the company were down 0.97 per cent and were trading at GBX 1,280.50 on 4 June at 10:20 GMT+1. The FTSE AIM UK 50 Index was down 0.37 per cent at 6,643.53.
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Here is a look at the three largest FTSE 250 travels and tourism stocks by market capitalisation and how they reacted to the news:
EasyJet Plc (LON:EZJ)
The shares of the low-cost airline were down 1.42 per cent and were trading at GBX 945 on 4 June at 10:20 GMT+1. The company has a market capitalisation of £4,381 million. Meanwhile, the broader index FTSE 250 was down 0.10 per cent at 22,780.68.
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For the six months ended 31 March 2021, the group’s revenue was down 90 per cent to £235 million compared to £2,838 million in the same period a year ago. Number of flights was down 85 per cent to 35,100 from 244,235 in the same period a year ago. The headline loss increased 497-537 per cent to a loss between £690-730 million from a loss of £193 million in the same period a year ago.
Wizz Air Holdings Plc (LON: WIZZ)
The shares of the airline company were down 3.36 per cent and were trading at GBX 4,529 on 4 June at 10:20 GMT+1. The company has a market capitalisation of £4,012.86 million. The FTSE 250 was down 0.10 per cent at 22,780.68.
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For the year ended 31 March 2021, it reported an underlying loss of €482 million compared to a profit of €344.8 million a year ago. Its revenue decreased by 73.2 per cent to €739 million against €2,761 million a year ago. Passengers carried fell by 74.6 per cent to 10.2 million compared to 40 million a year ago.
Carnival Plc (LON: CCL)
The shares of the cruise operator were down by 1.11 per cent and were trading at GBX 1,817.3 on 4 June at 10:20 GMT+1. The company has a market capitalisation of £3,382.49 million. The FTSE 250 was down 0.10 per cent at 22,780.68.
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For the first quarter of 2021, the company’s revenues fell to $26 million from $4,789 million in the same period a year ago. Its net loss was at $1,973 million compared to a loss of $781 million. Its operating loss increased to $1,524 million from a loss of $713 million in the same period a year ago.
