Airline and travel company shares tumble

Turmoil in Egypt hits Lufthansa, Air France, TUI, Thomas Cook and others

Among the biggest casualties on European stockmarkets as a result of the mass political demonstrations in Egypt and the Middle East have been shares in airlines and tour operators. Taking the biggest hits in recent days have been airlines with strong scheduled links to Egypt such as Air France and Lufthansa as well as tour operators like TUI and Thomas Cook that fly tens of thousands of tourists to Egyptian resorts each year.

Shares in International Consolidated Airlines Group, the Anglo-Spanish holding company recently formed with the merger of British Airways and Iberia, also tumbled. “Egypt has been a successful destination for tourists and though Egypt and Tunisia combined would account for only 10 percent of travel operators’ earnings, they are being bit by risk aversion,” Matthias Desmarais, head of leisure and services at Exane BNP Paribas in Paris, explained.

European airlines have cancelled some of their services for flights to and from Egypt and altered schedules according to the hours of the curfew in Cairo. Delta Air Lines has suspended its flights to Cairo, while British Airways, Air France and Lufthansa have been forced to adjust their schedules so that flights arrive and depart from the city in daylight. BA’s flights to and from Sharm el-Sheikh continue as normal.

Reuters

x

Check Also

Air France, cancel, delay, strike, February, pay, grounded, flights, Paris, Toulouse, Lyon

Air France strike hits Paris flights

Travellers are advised to postpone their flights until February 27 as chaos strikes airports.

Emirates, Ryanair, Flybe, Austrian, Virgin, British Airways, easyjet, American Airlines, airlines, load factor, PLF, fullest, planes, aircraft, environment, business, profit

Airlines with best and worst load factor

Flying planes full makes airlines far more profitable, and it’s better for the environment.

Delta, airlines, United, American Airlines, pay, pilots, bonus, wage, profit share, usa, captains

Airline gives employees $1.1bn

Delta Airlines is being generous, and people working for its competitors are not too happy.

Star Alliance, airlines, digital, technology, share, data, members, mobile, app, website, seat, book, interoperability

Star Alliance improves digital inter-usability

The alliance creates a digital services platform for customers using more than one member airline.

TUI, brand, Q!, result, seasonal loss, Fritz Joussen, Nordics, excursions, activities, stream, finance, accounts, ebita

Tui boosts activities and excursions, improves seasonal loss

The operator wants to raise its turnover and profit from transfers, activities and excursions, calling them a key growth area.

Infare, Harald Eisenaecher, appointment, management, Lufthansa, Sabre, airfare, pricing, intelligence, technology

Top executive joins Danish airfare intelligence firm

Danish provider of intelligence worldwide appoints Sabre and Lufthansa veteran.