Deep red for the transport and travel sector on the European stock exchanges. The STOXX Europe 600 Travel & Leisure, the European index that collects the best stocks in the travel sector, is the worst today with a drop of over 3%. Among the individual stocks, TUI sinks with -13%, showing the worst performance of the entire STOXX 600. The airlines also do badly, with Ryanair selling more than 6%, EasyJet sinking by almost 11%, Air France -Klm down 4% and Lufthansa down 6%.
The unexpected decision by Great Britain to establish a forced quarantine for all travelers from Spain after an increase in coronavirus cases in the Iberian country weighed on the sector. The British government has not ruled out taking similar measures against France and Germany as well, should there be an increase in the number of cases observed in these countries.
In the wake of this decision, TUI would announce the suspension of all travel to Spain, including the Canary Islands, starting on Sunday. While Ryanair, which recorded a quarterly loss, does not know if it will be able to close the 2020-2021 financial year with an annual profit. “A second wave of Covid pandemic in Europe in late autumn is our biggest concern at the moment,” said Ryanair CEO Michael O’Leary.