Shares of Tui, IAG and Lufthansa rise after Johnson’s British plan to end lockdown

The city of Ermoupolis (also called Ermoupoli) is located on the Greek island of Syros.

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LONDON – European travel stocks soared Tuesday morning as customers rushed to make new bookings after the UK announced its four-step plan to end coronavirus restrictions.

Shares in Tui, the German travel group, rose almost 7% in the first hours of European trading. International Airlines Group, which owns British Airways and Iberia, also soared more than 6% and shares in German airline Lufthansa rose more than 4%.

The sector has been hit hard by coronavirus restrictions, and people are advised not to travel abroad and have to deal with strict quarantine policies if they do.

However, on Monday afternoon, UK Prime Minister Boris Johnson unveiled his four-step plan to lift all social restrictions by June 21 and that prompted a surge in new reserves.

EasyJet said late Monday that it saw a 337% increase in flight bookings in the UK and a 630% increase in holiday bookings following the government announcement. Tui also said that bookings increased 500% overnight.

There is a great desire to be out there and see the world and that repressed is going to return, it is only a matter of time.

Keith barr

Executive Director of IHG Hotels & Resorts

Greece, Spain, Turkey and Portugal are among the top destinations in the new bookings.

Johan Lundgren, easyJet CEO, said in a statement: “We have consistently seen that there is a pent-up demand for travel and this surge in bookings shows that this signal from the government that it plans to reopen travel has been what consumers in the UK Kingdom have done. Waiting. “

Andrew Flintham, Managing Director of TUI UK and Ireland, said in an email that the Prime Minister’s announcement “was positive and shows that by working with the travel industry in a risk-based framework, our clients will have the opportunity to travel abroad no summer. “

The UK is lifting coronavirus restrictions in four stages starting on March 8 with the reopening of schools, but the whole process will depend on how the epidemiological situation evolves.

The government also said it is reviewing international leisure travel restrictions and will announce the changes on April 12.

“We know that there are clients who want to travel, there is a great desire to be out there and see the world and that repressed is going to return, it is only a matter of time,” Keith Barr, CEO of IHG Hotels & Resorts told Squawk Box on Tuesday. Europe from CNBC.

“Am I going to take the day trip from London to New York for a three-hour meeting? Probably not, so there will be some impact on business travel,” Barr said when asked how the industry is likely to change. in the post. -Covid world, but added that “but the vast majority of the farm will get ahead of this (crisis).”


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