Shares in travel and aviation businesses including the British Airways owner, IAG, Ryanair and the aero engine maker Rolls-Royce received a boost from news that the UK government is planning to simplify England’s rules for international travel.
Investors were buoyed up by the changes – which could include removing dozens of destinations from the 62-country “red list”, the highest alert for international travel requiring 11 nights hotel quarantine on return – which are expected to be officially announced by ministers on Friday. Ministers are also considering removing the amber list category of countries entirely, meaning there would be a clearer distinction between “go” and “no-go” destinations.
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Shares in IAG climbed 3.8%, making the airline group the biggest riser on the FTSE 100, while shares in InterContinental Hotels Group, the owner of the Holiday Inn chain, were up 2.5% in early trading. Rolls-Royce was another major beneficiary among FTSE 100 stocks, rising 1.5%.
The relaxation of rules, which could include scrapping the requirement for double-vaccinated people upon return to take PCR tests, also provided a boost to the package holiday group Tui, with a 2.9% lift in shares making it the second biggest riser in the FTSE 250 in early trading. The airlines Ryanair and Wizz Air were up 1.8% and 1.4% respectively.
WH Smith, which does strong trade from its operations in airports, saw a 1.7% rise while the Restaurant Group, which owns the Wagamama and Frankie & Benny’s chains, climbed 1.7%.
Under the current rules, double-vaccinated people arriving from green and amber list countries must take a Covid-19 test shortly before their return to England, and take a PCR test on or before their second day back.Internet Explorer Channel Network