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Airline and travel company shares hit by new Covid variant fears

Airline and travel company shares in London have taken a pummelling as flights were banned from six southern African countries with the discovery of a new Covid variant.

British Airways-owner IAG and EasyJet were both affected as well as Tui, Jet2 and Wizz Air as the London’s FTSE 100 fell by more than 2.7% this morning while leading stock market indexes in Germany and France both dropped by more than 3%.

Other quoted companies suffering from the share price fall included Carnival and On the Beach.

IAG’s share price dropped by 15% while EasyJet’s fell by 14% in early trading.

The government announced last night that flights from six southern African countries would be stopped temporarily from midday today (Friday).

Stock markets across the world fell on fears that the new Covid strain could hamper economic recovery.

Some other countries – such as Germany, Italy and Israel – have banned flights from the six southern African nations.

European Commission president Ursula von der Leyen tweeted that other EU nations should also “activate the emergency brake” to stop travel from these countries.

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