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News of Monarch airline going bust Monday morning, has seen airline shares jump, Ryanair share rose by 2.8 per cent this morning, Wizz Air and Flybe went up by 1.6 per cent and IAG, the owner of British Airways share price rose by one per cent.
Monarch who was Britain’s fifth largest airline went into administration at 4am Monday, the Civil Aviation Authority (CAA) is now conducting the “biggest ever peacetime repatriation” in the UK history.
110,000 passengers are affected and over the next fortnight 30 chartered planes from 30 airports will bring home those who are stranded.
Neil Wilson a market analyst for ETX said: Usually what’s bad for one airline – higher fuel costs, terror attacks, air traffic control strikes – are bad for the sector.
“Shares in the various players have a tendency to track each other with some consistency.
“But the failure of Monarch is good news for rivals… No doubt this takes the heat off Ryanair but it has wider implications.
“The third airline failure this year in Europe, after Alitalia and Air Berlin, is a symptom of over-capacity and overly-aggressive pricing.”
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