European Airline and Travel Stocks Plunge to Lowest Since 2013
European Airline and Travel Stocks Plunge to Lowest Since 2013
(Bloomberg) --
European airline and travel stocks slumped to the lowest since August 2013 after President Donald Trump restricted travel to the U.S. from Europe for a month. U.S. carriers also plunged in pre-market trading.
The Stoxx 600 Travel & Leisure Index fell as much as 10%, with declines for airlines led by long-haul carriers including Air France-KLM, Deutsche Lufthansa AG and British Airways parent IAG SA which all fell at least 9%.
Air France-KLM’s 361 million euro bonds due October 2022 dropped 2 cents on the euro to 89 cents. Lufthansa’s 500 million euro senior notes due 2024 fell 0.6 cents on the euro to 91 cents and IAG’s 500 million euro senior unsecured notes due November 2022 were down 0.7 cents to 91 cents.
In U.S. pre-market trading, American Airlines Group Inc., United Airlines Holdings Inc. and Delta Air Lines Inc. all slumped. Delta and American Airlines Group Inc. withdrew their profit forecasts earlier this week.
Other travel-related stocks also plunged, with airport owners and operators including Fraport AG and Aeroports de Paris tumbling and the world’s largest duty-free store operator, Dufry AG, down as much as 20%. The company earlier forecast a drop in sales and readied a cost-cutting plan.
Hotel stocks InterContinental Hotels Group Plc and Accor SA, and cruise-ship operators including Carnival Plc also tumbled.
To contact the reporters on this story: Beth Mellor in London at bmellor@bloomberg.net;Irene García Pérez in London at igarciaperez@bloomberg.net
To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, Morwenna Coniam
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