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Summary
- Travellers returning from France will no longer have to quarantine for ten days as the UK government has moved France to the amber list.
- The new changes will come into effect from 8 August onwards.
UK government has decided to move France from amber plus to amber list, which means fully vaccinated travellers returning to the United Kingdom from France will no longer need to quarantine. The new changes will be implemented from 8 August onwards. France was added to the amber plus list last month after the increases of Beta variant coronavirus cases in the country. Ease in travel restrictions will help to boost the travel and leisure sector in the United Kingdom.
Let’s look at FTSE listed travel stocks and see how they are reacting to the decision:
TUI AG (LON: TUI)
The company operates hotels and resorts under the various brand name like Robinson and Blue Diamond. It also has an airlines business with over 150 aircraft, 17 cruise lines, and 400 hotels.
The company reported a significant decline in revenue last year as most of its Hotels & Resorts were closed due to the Covid-19 pandemic and lockdown. However, the company issued convertible bonds and availed support packages from the government to continue its business activities. TUI Group has also sold the stake in the real-estate portfolio to the Riu family last month and received sales proceeds of 670 million euros.
TUI AG shares trade at GBX 325.30, marginally down by 0.03% on 5 August at 9.20 am GMT+1, with a market cap of £3.57 billion. The stock has given a 64.8% return to shareholders in the last one year.
International Consolidated Airlines Group (LON: IAG)
The IAG Group owns and operates British Airways and other passenger airlines in Europe. It has a fleet of 533 aircraft, which flies to more than 300 destinations worldwide.
IAG Group has reported passenger capacity of 21.9% of 2019 capacity levels in the second quarter of this year due to ongoing government restrictions and travel ban. Going forward, the company expect passenger capacity to be around 45% in the third quarter due to ease in travel restriction and continued business operations. IAG Group reported total revenue of €2212 million and an operating loss of €2035 million in the first six months of 2021.
Shares of IAG Group Plc trades at GBX 170.60, up by 0.01% on 5 August at 9.20 am GMT+1, with a market cap of £8.47 billion. In the last one year, the stock has given a 42.1% return to its shareholders.
Carnival Plc (LON: CCL)
The company operates the cruise line business under the Carnival Cruise Line brand, covering all major destinations globally. It has a combined fleet of over 100 ships and operates the hotels and resorts at few destinations.
Carnival Plc continues to resume operations from ports around the world using the gradual, phased-in approach and expects cruise operation at 65% capacity by the end of 2021 across all its leading cruise line brands.
Carnival Plc stock trades at GBX 1398.40, down by 1.34% on 5 August at 9.20 GMT+1, with a market cap of £16.28 billion. Carnival Plc has given a return of 66.5% to its shareholders in the last one year.
EasyJet Plc (LON: EZJ)
The company operates the low-cost airlines business under various brands names like EasyJet UK, EasyJet Europe. The company has over 340 aircraft, which flies to over 1000 routes in more than 30 countries globally. The company’s stock is constituent of FTSE 250 index.
EasyJet Plc reported passenger capacity of 17% of 2019 capacity levels during the third quarter of 2021. However, the airlines expect capacity to be at 60% of 2019 levels in the fourth quarter due to ease in travel restrictions in the coming months. The company reported total revenue of £212.9 million in the third quarter and a loss before tax of £318.3 million.
EasyJet Plc shares trade at GBX 828.80, up by 0.31% on 5 August at 9.20 am GMT+1, with a market cap of £3.80 billion. The stock has given 50.2% return to shareholders in the last one year.
