By Steve Goldstein, MarketWatch
U.K.-listed travel stocks slumped on Monday, with the sector continuing to feel the pressure on concerns that demand won’t soon return to normal even after the coronavirus shutdown eases.
“It seems airlines within the U.K. and Ireland could be dealt a harsher card compared with their mainland European and U.S. counterparts, with Vueling, Iberia, Lufthansa, Air France and KLM all receiving the kind of state aid that doesn’t seem forthcoming for the likes of BA, EasyJet or Ryanair,” said Joshua Mahony, senior market analyst at IG.
The European Commission approved the French plan to provide €7 billion to Air France.
The losses also come as Berkshire Hathaway Chairman and Chief Executive Warren Buffett revealed the firm sold his entire stake in the airlines sector.
Cruise operator Carnival /zigman2/quotes/210414141/delayed UK:CCL -7.91% and airline engine maker Rolls-Royce /zigman2/quotes/203646520/delayed UK:RR -5.13% also slumped. Rolls-Royce may cut 8,000 jobs, according to a Bloomberg News report.
The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.71% more broadly edged 0.3% lower to 5748.60. There were advances for companies more resilient to the pandemic, including Hikma Pharmaceuticals /zigman2/quotes/204872832/delayed UK:HIK +0.42% , business service firm Rentokil Initial /zigman2/quotes/207510108/delayed UK:RTO +0.43% and supermarket delivery service Ocado /zigman2/quotes/207225647/delayed UK:OCDO +3.87%