December 8, 2022

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…

UK travel and leisure sector under pressure amid tighter travel restrictions By Investing.com

Table of Contents


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.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.