Travel stocks slump in London after Germany warns over Spain’s coronavirus cases

Travel stocks slump in London after Germany warns over Spain's coronavirus cases

Travel stocks slump in London after Germany warns over Spain’s coronavirus cases


Passenger aircraft operated by Ryanair (right) stand near passenger aircraft operated by Tui at London Luton Airport.


Chris Ratcliffe/Bloomberg News

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.

TUI
TUI,
-5.26%
,
the U.K.-listed German travel operator, slumped over 4%. Iberia owner International Airlines Group
IAG,
-3.64%

dropped 3.2%, InterContinental Hotels
IHG,
-2.33%

fell 2.6% and easyJet
EZJ,
-2.41%

fell 1.2%.

London-listed Ryanair
RYA,
-3.59%

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
UKX,
+0.59%
,
meanwhile, rose 0.6%, as the mining companies followed the broader Chinese stock market higher.

Anglo American
AAL,
+2.96%
,
Rio Tinto
RIO,
+2.31%

and Glencore
GLEN,
+2.12%

all advanced.



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