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May 4, 2021, 12:02 p.m. EDT

Airline stocks gain altitude as Europe plans to welcome more overseas tourists

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By Jack Denton

Airline stocks flew higher on Tuesday, as the European Union moved to welcome foreign tourists to the region, a sign that more normal travel and tourism conditions can resume as COVID-19 vaccinations become more widespread.

Shares in British Airways owner IAG /zigman2/quotes/208070069/delayed UK:IAG -1.13% , Air France-KLM /zigman2/quotes/205396176/delayed FR:AF -3.40% , Lufthansa /zigman2/quotes/201210530/delayed XE:LHA -1.07% , Ryanair , EasyJet /zigman2/quotes/202825892/delayed UK:EZJ -1.68% , and Wizz Air /zigman2/quotes/210449062/delayed UK:WIZZ -0.36% were among the major risers in early European trading, as hopes rose for a recovery in the travel industry, which has been badly hit by the COVID-19 pandemic.

Shares in major hotel groups Accor /zigman2/quotes/203800565/delayed FR:AC -0.54% and InterContinental Hotels Group /zigman2/quotes/202865596/delayed UK:IHG -0.60% also rose, but a number of the travel stocks that were boosted in early trading later moved into the red as European stocks took a turn negative later Tuesday.

On Monday, the executive branch of the EU recommended easing travel restrictions to allow tourists from more countries to enter the 27-member bloc. 

Read more: EU proposes reopening external borders as vaccination campaigns pick up speed

Under the European Commission’s proposal, people who have been fully vaccinated against COVID-19 with an EU-approved vaccine or who come from a country with “a good epidemiological situation” will be welcome to the region. The EU has approved vaccines from Pfizer /zigman2/quotes/202877789/composite PFE -0.55% , Moderna /zigman2/quotes/205619834/composite MRNA -4.48% , AstraZeneca /zigman2/quotes/200304487/composite AZN +0.47% , and Johnson & Johnson /zigman2/quotes/201724570/composite JNJ -3.70% .

“Time to revive [the EU’s] tourism industry and for cross-border friendships to rekindle — safely,” said European Commission President Ursula von der Leyen, via Twitter . “We propose to welcome again vaccinated visitors and those from countries with a good health situation.” 

“But if variants emerge we have to act fast: we propose an EU emergency brake mechanism,” she added. Currently, visitors from only seven countries with low infection rates can enter the EU for nonessential reasons.

Travel stocks added lift to European stock markets which turned lower on Tuesday. The pan-European Stoxx 600 /zigman2/quotes/210599654/delayed XX:SXXP -0.17% fell 1.43% while London’s FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.25% index was 0.67% down. The CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -0.21% in Paris dropped 0.89% and Frankfurt’s DAX /zigman2/quotes/210597999/delayed DX:DAX -0.16% was 2.49% lower.

U.S. stocks faced a similar fate, with the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.30% and Nasdaq /zigman2/quotes/210598365/realtime COMP -1.96% down, while Dow industrials /zigman2/quotes/210598065/realtime DJIA -0.77% fell more than 260 points by midday after rising 238 points Monday to close at 34,113.

The broad narrative of economic optimism driven by the diminishing severity of the COVID-19 pandemic in many countries continues to drive stocks, while investors continue to eye inflation as a major concern for markets.

“The catalyst for this latest move higher is chatter about a commodities supercycle with oil companies and miners higher as well as continuing optimism about the reopening of the global economy,” said Russ Mould, an analyst at AJ Bell.

Along with airlines, metals and mining stocks contributed to buoyancy in European stock market indexes, with shares in Rio Tinto /zigman2/quotes/208934945/delayed UK:RIO +0.43% , BHP /zigman2/quotes/206213719/delayed UK:BHP -0.27% , Anglo American /zigman2/quotes/201381512/delayed UK:AAL -1.03% , Glencore /zigman2/quotes/201400686/delayed UK:GLEN +0.18% , and Fresnillo /zigman2/quotes/201300065/delayed UK:FRES -2.65% surging higher.

Major European-listed oil companies joined the commodities party and were among the other major risers in Europe, with shares in BP /zigman2/quotes/202286639/delayed UK:BP +0.56% , Royal Dutch Shell , Total , and Eni /zigman2/quotes/209584888/delayed IT:ENI -0.85% lifting.

Shares in semiconductor group Infineon /zigman2/quotes/203152288/delayed XE:IFX -3.08% fell near 6%, despite the fact that the chip maker raised its guidance for revenue and margins for the current fiscal year. The group said that it faces some supply constraints following the temporary shutdown of one of its plants in Texas.

Online meal-kit provider HelloFresh /zigman2/quotes/203376622/delayed XE:HFG -3.59% was another force dragging on European markets, with the stock down near 7% following the group’s quarterly earnings . The group confirmed the growth in revenue and adjusted earnings it preannounced in April.

/zigman2/quotes/208070069/delayed
UK : U.K.: London
169.40 p
-1.94 -1.13%
Volume: 14.39M
Jan. 30, 2023 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£8.49 billion
Rev. per Employee
£232,926
loading...
/zigman2/quotes/205396176/delayed
FR : France: Euronext Paris
1.56
-0.06 -3.40%
Volume: 18.21M
Jan. 30, 2023 5:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
€4.15 billion
Rev. per Employee
€313,816
loading...
/zigman2/quotes/201210530/delayed
XE : Germany: Xetra
9.65
-0.10 -1.07%
Volume: 3.27M
Jan. 30, 2023 6:30p
P/E Ratio
67.87
Dividend Yield
0.00%
Market Cap
€11.66 billion
Rev. per Employee
€282,325
loading...
/zigman2/quotes/202825892/delayed
UK : U.K.: London
498.70 p
-8.50 -1.68%
Volume: 2.92M
Jan. 30, 2023 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£3.83 billion
Rev. per Employee
£413,519
loading...
/zigman2/quotes/210449062/delayed
UK : U.K.: London
2,730.00 p
-10.00 -0.36%
Volume: 396,150
Jan. 30, 2023 4:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£2.83 billion
Rev. per Employee
£537,255
loading...
/zigman2/quotes/203800565/delayed
FR : France: Euronext Paris
29.70
-0.16 -0.54%
Volume: 549,040
Jan. 30, 2023 5:37p
P/E Ratio
518.32
Dividend Yield
0.00%
Market Cap
€7.85 billion
Rev. per Employee
€214,641
loading...
/zigman2/quotes/202865596/delayed
UK : U.K.: London
5,654.00 p
-34.00 -0.60%
Volume: 297,925
Jan. 30, 2023 4:35p
P/E Ratio
31.94
Dividend Yield
1.86%
Market Cap
£9.98 billion
Rev. per Employee
£237,627
loading...
/zigman2/quotes/202877789/composite
US : U.S.: NYSE
$ 43.55
-0.24 -0.55%
Volume: 24.40M
Jan. 30, 2023 4:03p
P/E Ratio
8.39
Dividend Yield
3.77%
Market Cap
$245.81 billion
Rev. per Employee
$1.26M
loading...
/zigman2/quotes/205619834/composite
US : U.S.: Nasdaq
$ 180.87
-8.48 -4.48%
Volume: 3.20M
Jan. 30, 2023 4:00p
P/E Ratio
6.54
Dividend Yield
N/A
Market Cap
$72.74 billion
Rev. per Employee
$7.86M
loading...
/zigman2/quotes/200304487/composite
US : U.S.: Nasdaq
$ 65.84
+0.31 +0.47%
Volume: 5.17M
Jan. 30, 2023 4:00p
P/E Ratio
100.86
Dividend Yield
2.16%
Market Cap
$203.43 billion
Rev. per Employee
$544,657
loading...
/zigman2/quotes/201724570/composite
US : U.S.: NYSE
$ 162.00
-6.23 -3.70%
Volume: 23.26M
Jan. 30, 2023 4:00p
P/E Ratio
24.04
Dividend Yield
2.79%
Market Cap
$439.83 billion
Rev. per Employee
$670,028
loading...
/zigman2/quotes/210599654/delayed
XX : STOXX
454.40
-0.77 -0.17%
Volume: 0.00
Jan. 30, 2023 11:03p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,784.87
+19.72 +0.25%
Volume: 594,598
Jan. 30, 2023 4:59p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
7,082.01
-15.20 -0.21%
Volume: 60,633
Jan. 30, 2023 6:05p
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,126.08
-23.95 -0.16%
Volume: 54,664
Jan. 30, 2023 6:30p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,017.77
-52.79 -1.30%
Volume: 0.00
Jan. 30, 2023 5:06p
loading...
/zigman2/quotes/210598365/realtime
US : Nasdaq
11,393.81
-227.90 -1.96%
Volume: 5.15B
Jan. 30, 2023 5:16p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
33,717.09
-260.99 -0.77%
Volume: 0.00
Jan. 30, 2023 5:06p
loading...
/zigman2/quotes/208934945/delayed
UK : U.K.: London
6,318.00 p
+27.00 +0.43%
Volume: 1.46M
Jan. 30, 2023 4:35p
P/E Ratio
7.73
Dividend Yield
8.36%
Market Cap
£105.59 billion
Rev. per Employee
£917,806
loading...
/zigman2/quotes/206213719/delayed
UK : U.K.: London
2,818.50 p
-7.50 -0.27%
Volume: 1.48M
Jan. 30, 2023 4:35p
P/E Ratio
8.31
Dividend Yield
N/A
Market Cap
£144.01 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201381512/delayed
UK : U.K.: London
3,520.50 p
-36.50 -1.03%
Volume: 1.40M
Jan. 30, 2023 4:35p
P/E Ratio
8.18
Dividend Yield
5.63%
Market Cap
£47.58 billion
Rev. per Employee
£446,346
loading...
/zigman2/quotes/201400686/delayed
UK : U.K.: London
549.20 p
+1.00 +0.18%
Volume: 17.90M
Jan. 30, 2023 4:35p
P/E Ratio
6.04
Dividend Yield
3.82%
Market Cap
£69.78 billion
Rev. per Employee
£1.36M
loading...
/zigman2/quotes/201300065/delayed
UK : U.K.: London
836.40 p
-22.80 -2.65%
Volume: 764,692
Jan. 30, 2023 4:35p
P/E Ratio
34.63
Dividend Yield
2.63%
Market Cap
£6.33 billion
Rev. per Employee
£93,691
loading...
/zigman2/quotes/202286639/delayed
UK : U.K.: London
492.05 p
+2.75 +0.56%
Volume: 20.44M
Jan. 30, 2023 4:35p
P/E Ratio
N/A
Dividend Yield
3.94%
Market Cap
£88.14 billion
Rev. per Employee
£2.66M
loading...
/zigman2/quotes/209584888/delayed
IT : Italy: Milan
14.17
-0.12 -0.85%
Volume: 9.61M
Jan. 30, 2023 5:35p
P/E Ratio
2.94
Dividend Yield
6.21%
Market Cap
€50.57 billion
Rev. per Employee
€3.91M
loading...
/zigman2/quotes/203152288/delayed
XE : Germany: Xetra
33.17
-1.06 -3.08%
Volume: 4.48M
Jan. 30, 2023 6:30p
P/E Ratio
20.12
Dividend Yield
0.96%
Market Cap
€44.54 billion
Rev. per Employee
€253,016
loading...
/zigman2/quotes/203376622/delayed
XE : Germany: Xetra
22.59
-0.84 -3.59%
Volume: 895,381
Jan. 30, 2023 6:30p
P/E Ratio
28.54
Dividend Yield
N/A
Market Cap
€4.02 billion
Rev. per Employee
N/A
loading...

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