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Egyptian unrest sends travel stocks down, oil price up

Investors reacted to events in Egypt by sending the share values of major travel companies in London falling yesterday and raising the oil price.


Thomas Cook suffered a 3% fall on the London Stock Exchange while shares in Tui Travel fell 2.6%. Thomas Cook shares have lost 16% of their value over the past year.


New British Airways parent International Airlines Group (IAG), formed by the merger with Iberia, declined in value by 1.76%. The IAG share price has fallen 10% since its launch at the start of last week.


EasyJet was largely static on the market yesterday, but its shares remain 14% down since mid-January after suffering their biggest one-day fall in six years on January 20 when the carrier warned rising fuel prices would hit profits.


The oil price was close to $100 a barrel at the close of trading in London yesterday, driving up the cost of jet fuel. Airline association IATA reported airline fuel already one-third more expensive than a year ago before the latest price hike.

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