Should you hold your aviation and tourism stocks?

Highlights

  • New travel restrictions coming up worldwide due to fear of the new variant of coronavirus,
  • Mandatory PCR tests on arrival in the UK have been introduced yet again.
  • The pandemic has caused a revenue loss of US $2.0 trillion (1.78 trillion euros) to the global tourism sector last year, as per UNWTO.

With the fear of the new variant of coronavirus omicron spreading rapidly across the world, a new wave of travel restrictions has started coming up for the aviation sector, which is bound to negatively impact travel and tourism yet again. The new covid strain, which was initially detected in South Africa, has created panic worldwide.

Mandatory PCR tests on arrival in the UK have been introduced by the Boris Johnson Government yet again and self-isolation is required until the passengers get a negative test result. Apart from the UK, several other countries are taking strict preventive measures to safeguard themselves. Like Israel is shutting down its borders for 14 days and Singapore is postponing the establishment of vaccinated travel lanes with the UAE, Saudi Arabia, and Qatar.

Should you hold your aviation and tourism stocks?

Access to Switzerland and Spain has also been stiffened for British nationals. UK’s low-cost airline group EasyJet has stated that its operations are being carried out at a normal scale, however, it is closely monitoring the situation, as inbound business travel may potentially be impacted in the upcoming days.

RELATED READ: Is it the right time to put your money in aviation stocks?

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Aviation has been among the hardest hit sectors during the pandemic. According to the latest report from the UN World Tourism Organization, the pandemic has caused a revenue loss of US $2.0 trillion (1.78 trillion euros) to the global tourism sector last year.

Here are 5 top UK aviation stocks that may be impacted by the new travel restrictions. 

easyJet plc (LON: EZJ)

easyJet plc’s current market cap is £3,788.53 million. It has given a negative return of 39.60% in the last one year. easyJet plc’s shares were trading at GBX 506.80 at 8:54 AM on 29 November 2021 (GMT). 

Wizz Air Holdings PLC (LON: WIZZ)

Wizz Air Holdings PLC’s current market cap is £3,847.86 million. It has given a negative return of 15.35% in the last one year. Wizz Air Holdings PLC’s shares were trading at GBX 3,843.00 at 8:47 AM on 29 November 2021 (GMT).

International Consolidated Airlines Group S.A. (LON: IAG)

International Consolidated Airlines Group S.A.’s current market cap is £6,518.79 million. It has given a negative return of 16.86% in the last one year.  International Consolidated Airlines Group S.A.’s shares were trading at GBX 134.10 at 8:51 AM on 29 November 2021 (GMT).

RELATED READ: Ryanair (RYA), IAG and EasyJet (EZJ): 3 aviation stocks to buy

Jet2 PLC (LON: JET2)

Jet2 PLC’s current market cap is £2,097.26 million. It is a constituent of the FTSE AIM UK 50 index and has given a negative return of 27.68% in the last one year. Jet2 plc’s shares were trading at GBX 1,016.50 at 8:57 AM on 29 November 2021 (GMT).

Ryanair Holdings plc (LON: RYA)

Ryanair Holdings plc is the largest airline group in Europe. The current market cap of the company stands at £15,199.72 million. It has given a negative return of 6.37% in the last one year. Ryanair Holdings plc’s shares were trading at EUR 14.49 at 8:59 AM on 29 November 2021 (GMT).

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