UK travel and leisure sector under pressure amid tighter travel restrictions By Investing.com
By Samuel Indyk Investing.com – The UK travel and leisure sector came under further selling…
By Samuel Indyk
Investing.com – The UK travel and leisure sector came under further selling pressure on Monday as tighter travel restrictions to and from the UK look set to be implemented.
Reports over the weekend suggested UK Prime Minister Johnson and his cabinet were to discuss whether to tighten restrictions at the border, which could include the possibility of passengers quarantining at hotels upon arrival.
The numerous new variants of the Covid-19 virus appear to be forcing the UK government to act with stricter rules than seen in the early part of the pandemic, where borders remained open and restrictions for travellers were light. The South African variant of the virus, named 501.V2, is one of particular concern. Vaccine maker Moderna Inc (NASDAQ:) has warned that the neutralising antibody response to the new strain from their jab was sixfold lower, although they added that those antibodies “remain above levels that are expected to be protective.”
Travel & Leisure
The index fell amid the increased travel restrictions and at 13:50GMT trades 4.0{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} lower. Unsurprisingly, airlines are taking a particularly bad hit with EasyJet PLC (LON:) and British Airways owner International Consolidated Airlines Group S.A. (LON:) both trading lower by 8{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5}.
SSP Group PLC (LON:) – the owner of brands such as Upper Crust and Ritazza – also came under selling pressure as the food and beverage concessions mainly operate in travel locations such as airports and railway stations.
Travel Bans
It is not just the UK that is implementing travel bans. Since Friday, Germany, France, Portugal, Belgium, Finland, and Sweden have all announced travel or entry restrictions of some sort.
Furthermore, US President Biden is expected to announce a travel ban on arrivals from the UK and the European Union, as well as Brazil and South Africa.
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