European Travel Stocks Extend 2021 Losses on Restrictions Worry
(Bloomberg) -- Europe’s travel and leisure stocks took a fresh beating Monday amid concern about a tightening of pandemic restrictions over the key Christmas period to stem the spread of the omicron Covid-19 variant.
The Stoxx Travel and Leisure index fell as much as 3.4% in early trading, the most since worries about the new strain emerged last month, with airlines like British Airways-owner IAG SA, Deutsche Lufthansa AG and Wizz Air Holdings Plc all dropping at least 5%. Hoteliers such as Whitbread Plc and Accor SA and tour operator TUI AG also fell.
At the weekend, U.K. Health Secretary Sajid Javid declined to rule out stronger U.K. Covid-19 rules before Christmas, while the Dutch returned to a strict lockdown on Sunday. France is curbing outdoor revelry on New Year’s Eve and Spain will convene an online emergency meeting on Wednesday to discuss measures. Elsewhere, Germany has become the latest country to ban most travelers from Britain, the BBC reported.
The travel and leisure subindex is Europe’s only industry benchmark in the red this year, down about 6% versus a 16% rise for the broader market.
©2021 Bloomberg L.P.