By Steve Goldstein, MarketWatch
Shares of U.K.-listed, German-headquartered travel operator TUI surged nearly 40% on hopes for summer tourist activity.
The move by Spain to let foreign tourists enter the country starting on July 1 is big for the travel operator, which is fighting to survive without cash coming in.
On May 10, TUI’s /zigman2/quotes/207049334/delayed UK:TUI +1.77% cash and available facilities amounted to €2.1 billion — Morgan Stanley analysts say that is insufficient to deal with a prolonged period of minimal revenue with monthly cash burn of around €600 million.
TUI’s chief executive told the Rheinische Post that it planned to resume flights at the end of June.
Other travel stocks rallied in London as well, with Iberia owner International Consolidated Airlines Group /zigman2/quotes/208070069/delayed UK:IAG -0.63% jumping 20% and easyJet /zigman2/quotes/202825892/delayed UK:EZJ -0.47% rallying 17%.
Airline engine maker Rolls-Royce /zigman2/quotes/203646520/delayed UK:RR +3.10% surged 11%.
The broader FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.34% rose 1.2% to 6062.83, with markets across the world advancing on hopes for reopenings and news of a new vaccine trial starting.
Retailers, including Primark operator Associated British Foods /zigman2/quotes/204493701/delayed UK:ABF -0.62% and JD Sports Fashion /zigman2/quotes/207007202/delayed UK:JD +2.40% , climbed as U.K. Prime Minister Boris Johnson said nonessential retailers will be able to reopen in the middle of June.