Summer Travel Gets A Green Light, But Not Everyone Is Flying High

0
Summer Travel Gets A Green Light, But Not Everyone Is Flying High
JESHOOTS-com / Pixabay

“It looks like the travel sector will be blessed with some semblance of a travel season, with some of the UK’s most popular destinations given the green light.

Get The Full Ray Dalio Series in PDF

Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q1 2021 hedge fund letters, conferences and more

UK's Travel Sector Gets A Green Light

The Balearic Islands, which include hot spots like Ibiza and Mallorca, have been shifted to the green list alongside Portugal’s Madeira, Malta and a handful of UK overseas territories. Shares in Ryanair, easyJet, Wizz Air and Tui all moved higher off the back of the announcement.

How To Invest In India’s Growth with INDF’s Amit Anand

IndiaValueWalk's Raul Panganiban interviews Amit Anand, Co-Founder of INDF, and discusses his approach to investing and why India Financials are very attractive today. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors. Interview with INDF's Amit Anand


It’s a key development the majority of the airlines at this point. Long haul carriers like British Airways parent IAG will see few benefits from the phased re-opening. Domestic travel within Europe is still the largest segment for IAG, but roughly 30% of its business is reliant on travel to and from North America, which is still on hold.

For low cost carriers, this news is a welcome tailwind. easyJet has already proven it’s ready to scale up its operations as needed to accommodate the ever-changing list of travel-friendly locations. No one will be heaving a larger sigh of relief than Ryanair’s Michael O’Leary, whose strategy has been arguably the boldest among the group. Ryanair took delivery of its first batch of “Gamechanger” aircraft just days after Portugal was removed from the green list, stoking fears that the O’Leary’s decision to take advantage of favourable pricing and up its aircraft orders was a bit premature.

Rolls Royce Shares Slump

Further up the food chain, Rolls Royce shares slumped. The group’s bread and butter comes from servicing and delivering widebody aircraft engines, which are used primarily for long-haul fligths. While the green list additions are good news, a few reopened routes isn’t enough to excite investors. That’s because Rolls’ own recovery won’t materialise until after the airlines are back to business as usual.

The big question now is whether the flurry of excitement over the newly green destinations will be enough to spur on new bookings. While we’re confident that the pent-up demand is ready and waiting to fly, the headache that came with Portugal’s downgrade may not be so easy to forget. Plus, it’s not just the UK restrictions we have to worry about. Shifting quarantine regulations in some European countries following German Chancellor Angela Merkel’s calls for all British travellers to quarantine could add yet another spanner to the works.“

Article by Laura Hoy, Equity Analyst at Hargreaves Lansdown


About Hargreaves Lansdown

Over 1.6 million clients trust us with £132.9 billion (as at 30 April 2021), making us the UK’s largest digital wealth management service. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.

Previous article Tips And Thoughts On Retirement Planning – Beyond Retirement
Next article The Rise Of Video Marketing And How It Affects Your Business
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

No posts to display