Thomas Cook has ceased trading on Monday after last-minute talks to save the 178-year-old holiday company failed. Shares in Tui rose by almost 10% after Thomas Cook collapsed up at 903p and Ryanair shares was up 3.9%.
EasyJet rose 4.8% and IAG who owns British Airways shares rose by 1.2% in earl morning trading on Monday.
With the collapse of such a big travel company airlines around the world may see changes in aviation fuel supply temporarily, this could include fuel prices and supply.
Markets.com chief markets analyst Neil Wilson said, “The effects will be felt across the sector, not all bad.
“The group expects to be able to recover the costs of the cancelled flights via chargeback claim (as was the case for the Monarch failure in 2017).
“This one-off exceptional will be booked in the current financial year. The Board is currently evaluating the potential effects of the failure on its forecasted performance for the year ending 30 September 2020, and a further update will be provided when appropriate.”
The Share Centre investment research analyst Helal Miah added, “Being one of the largest travel groups, its disappearance will mean a large player’s future customer base will now move over to its rivals.”