Danni Hewson, finance analyst at AJ Bell comments on market falls from TUI, On the Beach, Jet 2 and IAG following the publication of the government’s report into foreign travel.
“To book or not to book that is the question that seems to have been answered today when it comes to a spot of summer sun. “Not yet,” wasn’t quite what travel operators had been hoping for and it’s no surprise to find a number of them among the biggest losers on the London markets. These are companies burning through cash and depending on consumer confidence.
“But consumers are bewildered. Many forced to re-book last summer will be having second thoughts if they’re going to have to fork out hundreds of pounds for PCR tests on their return. It leaves businesses like TUI in a precarious position. Even if foreign travel gets the go-ahead next month the season has already been curtailed. Jet 2 announced it won’t even think about restarting holidays until the end of June because of a lack of clarity and detail.
“A short season, a large proportion of any business held over from last year and fresh bookings likely to be suppressed all leads to questions about how much new money can potentially fill the industry’s empty tanks.”