The travel sector is waking up on Monday to a dose of reality as cold water is poured on the idea of foreign travel for Britons this summer, says AJ Bell investment director Russ Mould.
“Airlines and travel operators had seemingly refused to countenance the cataclysmic idea of another heavily disrupted summer and had been busily advertising to an increasingly inoculated UK population.
“However, the significantly slower pace of the vaccine rollout in the EU, a spike in infections in mainland Europe and the emergence of new variants has complicated the picture.
“The risk, and one being increasingly acknowledged by Government ministers, is this summer is even worse than last for the travel space as the UK keeps restrictions in place to avoid undermining its hard-won success with the vaccine.
“The likes of TUI, EasyJet, Jet2 and businesses linked to the aviation sector like Rolls-Royce were all descending rapidly this morning.
“Add to this the threat of an EU ban on the export of Covid jabs to the UK and a currency crisis in Turkey and it’s no surprise the FTSE 100 has fallen out of bed.”