Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

European Airlines Weaker As EU, U.S. Try to Limit Transatlantic Travel

Published 2021-08-31, 05:58 a/m
Updated 2021-08-31, 05:58 a/m
© Reuters.

© Reuters.

By Dhirendra Tripathi

Investing.com – Stocks of most European airlines traded lower Tuesday as the EU dropped the U.S. from its ‘safe travel list’ and the latter, for its part, released a ‘do not travel’ advisory for several countries on the continent.

Shares of British Airways-owner IAG (LON:ICAG) fell 2.7% in London trading. Air France KLM (PA:AIRF) traded flat.

Deutsche Lufthansa (DE:LHAG) fell 1.1% as traders chose to ignore CEO Carsten Spohr’s comment that the German airline will generate positive cash flow this summer. The U.S. on Monday raised the alert status for arrivals from both Germany and neighboring Switzerland.

Stocks of low-cost carriers EasyJet (LON:EZJ) and Ryanair (LON:RYA) also fell, by 1.7% and 2.1%, respectively.

The respective decisions by the U.S. and the EU were prompted by the surge in Covid-19 cases in the two regions, more so in the former where the spread of the delta variant has taken the number of new infections to levels last seen at this winter's peak of the pandemic.

The U.S. is averaging more than 155,000 new coronavirus cases and 1,200 deaths per day, overwhelmingly among the unvaccinated part of the population.

The EU’s decision isn’t binding, as public health policy remains a competence of its member states. It also contains waivers for those who have been fully vaccinated, in important loophole. U.S. travelers will have to be immunized with one of the vaccines approved by the EU, which includes Pfizer (NYSE:PFE), Moderna (NASDAQ:MRNA), AstraZeneca (NASDAQ:AZN) and Johnson & Johnson.

Possible restrictions on U.S. travelers could include quarantines, further testing requirements upon arrival or even a total ban on all non-essential travel from the U.S., according to a report by AP.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.