Airlines shares rise as plans to relax England’s Covid travel rules | Stock market

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Shares in travel and airline companies including British Airways, Ryanair and aerodynamic maker Rolls-Royce have received a boost from news that the UK government plans to streamline England’s rules for international travel.

Investors have benefited from the changes – which could include removing dozens of destinations from the 62-nation “red list”, the highest international travel alert requiring 11 nights of quarantine upon return – which ministers are expected to formally announce on Friday.

Ministers are also considering removing the amber list category of countries entirely, meaning that there will be a clearer distinction between “go” and “no-go” destinations.

Shares in IAG rose 3.8%, making the airline group the biggest gainer in the FTSE 100, while shares of InterContinental Hotels Group, owner of the Holiday Inn chain, rose 2.5% in early trading. Rolls-Royce was another major beneficiary among the FTSE 100 stocks, up 1.5%.

The relaxation of the rules, which could include removing the requirement for fully vaccinated people to receive PCR tests upon return to the UK, also boosted Tui’s holiday group, with a 2.9% increase in shares making it the UK’s second-largest riser. The FTSE 250 is in early trading. Shares of Ryanair and Wizz Air rose 1.8% and 1.4%, respectively.

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WH Smith, which has strong trading from its airport operations, was up 1.7%, while the restaurant group, which owns the Wagamama and Frankie & Benny chains, was up 1.7%. Global conference organization Informa, which has been hit hard by the pandemic, saw a 2.5% rebound, while retailer Burberry jumped 1.5% on hopes of a return in international tourism.

“Companies that rely heavily on international tourists saw the start of a jump in their stock prices today with a significant change in travel due rules,” said Susanna Streeter, senior investment and markets analyst at Hargreaves Lansdowne. “This is the much-needed jolt of energy for the travel industry after months of uncertainty.”

Under current rules, fully vaccinated people arriving from Green List and Amber countries must take a Covid-19 test within 72 hours before returning to England, and take a PCR test on or before their second day.

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