Travel stocks suffer £21BN hit to valuations from war in Middle East
More than £21 billion has been wiped off the value of the world’s biggest travel stocks since the outbreak of the Iran war.
The sector is grappling with a hit in demand as holidaymakers swerve trips abroad in favour of less anxiety-inducing staycations.
Analysis of the travel titans, including UK-listed firms such as hotel chain IHG and British Airways owner IAG, showed that EasyJet has been the biggest loser, with £580million wiped off its value since February 28.
Cruise operators Carnival and Royal Caribbean have also taken big hits, losing a combined £16 billion, according to eToro.
Turbulence: EasyJet has been the biggest loser, with £580million wiped off its value since February 28
The investment platform found that a number of travel stocks, which include major names such as Ryanair, Airbnb and Hyatt, were down 6 per cent since the conflict began.
The wipe-out reflects ‘investor concern that higher oil prices, possible disruption to airspace and weaker consumer confidence could hit demand during the key travel season,’ according to eToro market analyst Sam North.
It comes after Tui said it had absorbed about £35million in extra costs from the war in March.
This included paying for 5,000 customers to return home from two of its cruise ships trapped in Abu Dhabi and Doha.
There have also been reports that customers are booking closer to their departure times due to the uncertainties. EasyJet will next week shine a further light on whether customers have been put off by headlines over potential increases to ticket prices when it updates the City on Thursday.
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