Travel Share Make Financial Markets Buzz…
Today May 26th the financial markets were getting excited about the end of lockdown. The whole leisure sector including cinemas and pubs, holiday companies and airlines were feeling the benefits after the long uncertainty of the last few months.
European shares moved up to an 11 week high after Germany announced a €9bn bailout of Lufthansa after previously awarding a government bailout to TUI. In the UK the FTSE rose 1.9% after the long bank holiday weekend with the FTSE 250 index up by 3%.
IAG the owners of British Airways were one of the best performers up 15% with other airlines like Easyjet seeing shares rise 11.5% and Rolls Royce up 9%, investors were clearly seeing the green shoots of a return to international travel. Other winners in the travel and leisure sector were InterContinental Hotels up 14% and Whitbread owners of Premier Inns also up 14%. Cineworld saw a 23% rise in share price clearly a sign that investors believe we are now over the worst.
This good news for the travel and leisure sector has unfortunately come too late for many companies and sadly some well known and much loved brands will not be back. For all of these companies owners and staff we are genuinely saddened not just because it could have been anyone of us in their shoes but also because we all know friends and family who now face a very uncertain future.