U.K.-listed travel stocks slump to worst level since day that Pfizer announced its vaccine worked

By Steve Goldstein

U.K. travel and leisure stocks plunged on Friday after the discovery of a new coronavirus variant to the worst levels since Pfizer first announced the results of a vaccine study.

The FTSE 350 travel and leisure sector dropped 6% to 522.14, which is the lowest since Nov. 9, 2020. It’s still 8% above the pre-vaccine announcement level.

Airport restaurant operator SSP Group /zigman2/quotes/205370875/delayed UK:SSPG -0.46% , and British Airways owner International Airlines Group /zigman2/quotes/208070069/delayed UK:IAG +1.60% each dropped 14%. Domino’s Pizza Group /zigman2/quotes/203506006/delayed UK:DOM +0.52% , which operates U.K. franchises of the pizza company, was the only constituent of that index rising, edging up 1%.

The reaction was severe considering how little is known about the B.1.1.529 variant, that’s believed to be driving a spike of cases in South Africa and led the U.K. to order a halt of passenger traffic from Southern Africa. Africa and the Middle East represented 3% of IAG’s passenger traffic in the third quarter, and other airlines that have been slammed such as Wizz Air /zigman2/quotes/210449062/delayed UK:WIZZ +2.31% don’t fly to Africa at all.

“The immediate way the tough restrictions were imposed was a reminder of just how tied companies’ fortunes are to snap government decisions and the latest twists in the trajectory of the virus,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

The selling wasn’t limited to travel stocks, with oil major BP /zigman2/quotes/202286639/delayed UK:BP -1.26% , Asia-focused bank Standard Chartered /zigman2/quotes/200125072/delayed UK:STAN -0.47% and mining conglomerate Glencore /zigman2/quotes/201400686/delayed UK:GLEN -1.57% each reeling by about 6%.

The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.06% fell over 3% in midday action.

/zigman2/quotes/205370875/delayed

Add to watchlist UK:SSPG

SSP Group PLC

UK : U.K.: London

283.00 p

-1.30 -0.46%

Volume: 1.18M

Jan. 20, 2022 4:35p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

£2.26 billion

Rev. per Employee

£36,182

/zigman2/quotes/208070069/delayed

Add to watchlist UK:IAG

International Consolidated Airlines Group S.A.

UK : U.K.: London

162.56 p

+2.56 +1.60%

Volume: 24.99M

Jan. 20, 2022 4:35p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

£7.94 billion

Rev. per Employee

£72,726

/zigman2/quotes/203506006/delayed

Add to watchlist UK:DOM

Domino's Pizza Group PLC

UK : U.K.: London

422.00 p

+2.20 +0.52%

Volume: 428,895

Jan. 20, 2022 4:35p

P/E Ratio

28.51

Dividend Yield

2.87%

Market Cap

£1.88 billion

Rev. per Employee

£169,835

/zigman2/quotes/210449062/delayed

Add to watchlist UK:WIZZ

Wizz Air Holdings PLC

UK : U.K.: London

4,597.00 p

+104.00 +2.31%

Volume: 246,374

Jan. 20, 2022 4:35p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

£4.63 billion

Rev. per Employee

£250,991

/zigman2/quotes/202286639/delayed

Add to watchlist UK:BP

BP PLC

UK : U.K.: London

389.15 p

-4.95 -1.26%

Volume: 36.76M

Jan. 20, 2022 4:35p

P/E Ratio

16.61

Dividend Yield

2.93%

Market Cap

£77.33 billion

Rev. per Employee

£1.75M

/zigman2/quotes/200125072/delayed

Add to watchlist UK:STAN

Standard Chartered PLC

UK : U.K.: London

511.80 p

-2.40 -0.47%

Volume: 4.22M

Jan. 20, 2022 4:35p

P/E Ratio

18.96

Dividend Yield

1.70%

Market Cap

£15.83 billion

Rev. per Employee

£167,202

/zigman2/quotes/201400686/delayed

Add to watchlist UK:GLEN

Glencore PLC

UK : U.K.: London

412.50 p

-6.60 -1.57%

Volume: 32.37M

Jan. 20, 2022 4:35p

P/E Ratio

37.74

Dividend Yield

2.13%

Market Cap

£54.86 billion

Rev. per Employee

£843,117

/zigman2/quotes/210598409/delayed

Add to watchlist UK:UKX

FTSE 100 Index

UK : FTSE UK

7,585.01

-4.65 -0.06%

Volume: 712,039

Jan. 20, 2022 4:58p