Britain’s top shares dropped yesterday, led down by airlines, as investors bet on a period of consolidation for the FTSE 100 after it reached a 14-year high earlier in the day.
Profit-taking continued for shares of British Airways owner IAG and easyJet. Both airlines have jumped around 40% in the last 12 months, and investors have been cashing in the gains, Reuters reported.
Traders said an elevated oil price was partly to blame for the declines, with Brent crude near 2-1/2 week highs above $110 a barrel.
Canadian investment bank RBC cut its target price for easyJet to 1,750 pence from 1,800 pence. It cited the difficulties easyJet set out in its results statement in forecasting passenger behaviour this summer, when people’s holiday dates might be based on whether their team was still in the World Cup.
EasyJet led the market lower, down 6.7%, followed by IAG, 6% weaker.