Travel stocks slump in London after Germany warns over Spain’s coronavirus cases
U.K. travel and leisure stocks slumped on Monday, as Germany warned over Spain’s rising coronavirus cases, fueling worries about an uptick in coronavirus cases in Europe.
Like the U.K., Germany is imposing a two-week quarantine on those who return from Spain.
the U.K.-listed German travel operator, slumped over 4%. Iberia owner International Airlines Group
dropped 3.2%, InterContinental Hotels
fell 2.6% and easyJet
shares fell 2.9%, as the Irish airline operator said it was cutting capacity by 20% in September and October. Forward bookings have “notably weakened over the last 10 days, given continuing uncertainty over recent COVID case rates in some EU countries.” The capacity reductions will be focused on Spain, France and Sweden, where case rates have led to increased travel restrictions, and Ireland, which the airline said has a “uniquely restrictive” quarantine.
The broader FTSE 100
meanwhile, rose 0.6%, as the mining companies followed the broader Chinese stock market higher.