Easyjet Shares Drop After Plans On Quarantine - Dispatch Weekly

As recently as Monday the 11 of May, EasyJet and Ryanair led the fall in European airline shares after an outbreak of the coronavirus in northern Italy. EasyJet shares fell 15% that day, while Ryanair shares fell 12% after the outbreak was announced and its quarantine plans announced.

IAG, the owner of British Airways, has also reported a fall in bookings for the first half of the year and warned that overall bookings will fall in 2020.

Global aviation is facing a battle for survival after most flights were cancelled in March due to travel restrictions aimed at containing the pandemic. Travel restrictions, which will have a negative impact on business, have a significant impact on markets worldwide.

Britain’s new quarantine rules risk derailing the recovery of UK-based airlines, and the industry has urged the government to come up with alternative plans.

Meanwhile, budget airline EasyJet said quarantine requirements must be short – and replaced with a targeted scheme that allows low-risk passengers to travel without problems. Heathrow Airport, which is Europe’s busiest airport during normal times but whose passenger numbers have fallen by 97% since April, is calling for common international standards to allow passengers to travel freely once the virus is under control. Britain’s Jetters has urged the Government to keep the stringent requirements for a short period as it calls for plans to reopen the borders and the new travel rules send shockwaves through the industry.

British Prime Minister Boris Johnson said Sunday that people entering the country must be quarantined to prevent a second coronavirus pandemic. Telling airlines that there will be a two-week quarantine for most people coming from abroad is likely to discourage people from travelling.

The government said Prime Minister Boris Johnson had drawn up plans for a 14-day quarantine, which could be introduced by the end of May, threatening to upend the ability of passengers from the Middle East, North Africa, South America, Africa and Asia to fly in the coming summer months. It has created a crisis for airlines and airports, which are desperately waiting for travel demand to recover.

British Prime Minister Boris Johnson will get Britain back to work, and France is bypassing one of Europe’s toughest blockades. He will flesh out his approach to lifting Britain’s deadlock in Parliament and outline it in a televised address to the nation.

Markets have recognized that the end of the lockdown policy would come fairly gradually and the V-shaped recovery will not proceed as quickly as expected, “said Mark Williams, head of global investment strategy at Morgan Stanley.

Europe’s mining index led the losses, with shares in the world’s largest steelmaker ArcelorMittal plunging 16.2% after Moody’s downgraded its rating from BBB- to Ba1 – with a negative outlook, a sign that the rating agency expects economic conditions to deteriorate significantly due to the pandemic by 2020. European stocks closed while banks, miners and travel stocks bore the brunt of worries about the impact of the lockout in many countries. Stocks in the US S & P 500 index, which closed flat, rose 0.1% after returning from vacation over the weekend, easing tensions between the US and China.

The pan-European STOXX 600 lost 0.4% after gaining almost 1% in the first half of the day as the market was supported by a 1.5% rise in US crude prices. Pictured is the headquarters of the European Central Bank (ECB) in Frankfurt am Main on 5 October 2015.

The FTSE 100 slipped into the red after abandoning its gains in the first half of the day as airline shares were sold in response to plans for quarantined travellers to the UK. Shares in EasyJet, Air France-KLM and Virgin Atlantic rose later in the session as investors focused on news that Germany and South Korea have seen an acceleration in new coronavirus infections in recent weeks, despite measures to ease restrictions.

Britain’s blue-chip index fell 16 points, or 0.3%, to 5,920 after opening 1% higher, but fell back in the second half of the day, falling back from a 1.5% high on Tuesday. His owner has fallen back to third place. The FTSE 100 was down 3%, while Wizz Air (WIZZ) fell 1% to PS26.62 after hitting an all-time high of PS27.50 on Monday.

But the biggest loser in the FTSE 100 was the engineering group, which slumped 22 per cent to 247p, its lowest level in more than a year.

The 747 makers asked the US government for a $60 billion bailout last year after suffering a steep drop in sales as the pandemic curbed airlines’ demand for new planes. BCA serves several airlines, including most flight cancellations in the Middle East, as countries struggle to control the spread of the coronavirus. The engineering company is one of its most important customers, and the chaotic picture at airlines and airports has hit investment firm 3I Group PLC, which holds shares in the world’s second-largest aircraft maker, Boeing, whose shares plunged 14% to 542.6%.