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May 4, 2020, 6:43 a.m. EDT

Travel stocks slump in London as FTSE 100 slips

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By Steve Goldstein, MarketWatch


Getty Images
Aircraft grounded due to the COVID-19 pandemic, including planes operated by TUI, EasyJet and Jet2, are pictured at Manchester Airport, England, on May 1, 2020.

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.

EasyJet /zigman2/quotes/202825892/delayed UK:EZJ -9.19%  shares fell 8% and British Airways owner International Consolidated Airlines Group /zigman2/quotes/208070069/delayed UK:IAG -14.60% fell 5%.

“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%  

/zigman2/quotes/202825892/delayed
UK : U.K.: London
539.60 p
-54.60 -9.19%
Volume: 9.37M
Sept. 18, 2020 4:35p
P/E Ratio
8.88
Dividend Yield
8.14%
Market Cap
£2.45 billion
Rev. per Employee
N/A
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/zigman2/quotes/208070069/delayed
UK : U.K.: London
110.55 p
-18.90 -14.60%
Volume: 62.40M
Sept. 18, 2020 4:35p
P/E Ratio
N/A
Dividend Yield
9.72%
Market Cap
£5.49 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210414141/delayed
UK : U.K.: London
947.60 p
-81.40 -7.91%
Volume: 2.95M
Sept. 18, 2020 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£8.58 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203646520/delayed
UK : U.K.: London
180.15 p
-9.75 -5.13%
Volume: 20.71M
Sept. 18, 2020 4:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£3.48 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,007.05
-42.87 -0.71%
Volume: 1.54M
Sept. 18, 2020 4:56p
loading...
/zigman2/quotes/204872832/delayed
UK : U.K.: London
2,650.00 p
+11.00 +0.42%
Volume: 691,855
Sept. 18, 2020 4:35p
P/E Ratio
15.80
Dividend Yield
1.34%
Market Cap
£6.11 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/207510108/delayed
UK : U.K.: London
559.20 p
+2.40 +0.43%
Volume: 4.84M
Sept. 18, 2020 4:35p
P/E Ratio
42.92
Dividend Yield
0.27%
Market Cap
£10.32 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/207225647/delayed
UK : U.K.: London
2,817.00 p
+105.00 +3.87%
Volume: 5.26M
Sept. 18, 2020 4:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£20.77 billion
Rev. per Employee
£112,886
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Steve Goldstein is MarketWatch markets editor for Europe. Follow him on Twitter: @MKTWgoldstein.

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