Some of the biggest leaps seen in early trading this morning are as follows:
- EasyJet up 11%
- IAG up 8%
- TUI up 6%
- Whitbread up 4%
- J D Wetherspoon up 3%
Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown comments:
‘’The roadmap to reopening has accelerated the recovery in travel and hospitality stocks with fresh rises since the market open.
The palpable sigh of relief that there ares date to target for struggling pub and restaurant chains, has translated into a share price rally for the sectors.
Although international travel won’t begin until at least 17th May, news that the government’s global taskforce will reconvene in April to recommend how holidays can resume has been a boost for the industry which has been anxious for a sense of direction.
Easyjet shares took off at the open, soaring 11 per cent while British Airways owner IAG lifted by 8% and there was another upwards swing of 6% for tour operator TUI. Premier Inn owner Whitbread added another 4% as trading got underway. Intercontinental Hotels Group rose by more than 3%, while JD Wetherspoon and the Restaurant Group also rose by around 3%.
Restaurants and bars who poured money into providing outdoor dining, may start to see more return on their investment given customers can return to exterior spaces from April 12th.
Many innovative solutions like pop-up waterproof booths, terraces on parking spaces and retractable awnings have been mothballed despite high hopes they would help lure in customers during winter months. Many of these creative endeavours have gone to waste during lockdowns but could still come into their own as restrictions ease.
Indoor dining and hotel stays won’t resume until May 17th, so the next few months is still likely to see a further drain on finances for many struggling travel and hospitality businesses. All eyes will be on further announcements expected on Budget day about the extension to the furlough scheme and fresh emergency funding for companies at risk.’’