Airlines and other travel stocks attracted more buyers than sellers this morning as the European Union said it would allow visits from vaccinated travellers.
The European Commission confirmed that the EU’s members will unconditionally accept any holidaymakers or business travellers if they have received coronavirus vaccines that have been approved by the European Medicines Agency.
Over 12 months ago the bloc shut down almost all non-essential travel from most countries, including the US.
UK regulations are set to allow people to travel abroad for holidays from 17 May under a proposed ‘traffic light’ system that will impose harsher restrictions on countries with higher rates of infection.
Anyone returning from abroad will still need to be tested and may be required to quarantine.
The government has not yet confirmed when unrestricted overseas travel will return.
The EU decision “does highlight a gradual willingness to wake international air travel from its drawn-out slumber,” said market analyst Josh Mahony at IG. “Unfortunately, India Unfortunately, India highlights the risks involved when vaccination levels are low, with daily cases rising from 47k to 321k in the space of a month.
“Until vaccinations build a strong base layer of protection, countries will have to continue the fine balancing act that involves knowing greater economic freedom will often come with higher risk of widespread infections.”
In other travel news, Hong Kong and Singapore also announced a much-awaited travel bubble starting from 26 May and following a similar move between New Zealand and Australia last week.
Shares in tour operator TUI AG (LON:TUI) and British Airways owner IAG (LON:IAG) were up 4% on Monday morning, while Easyjet PLC (LON:EZJ) climbed 3.5%, Ryanair Holdings PLC (LON:RYA) was up 2.5% and Wizz Air Holdings PLC (LON:WIZZ) and On The Beach Group PLC (LON:OTB) rose 2%.