Could this be a sign of good things to come all around the world?
Perhaps this week’s rally in airline stocks shares the same sentiment domestically, pointing to a similar future.
Seemingly ahead of the rest of the world, Brits are already booking international holiday travel at a clip of 600% after Britain laid out plans to gradually relax coronavirus restrictions, giving battered airlines hope that a bumper summer could come to their rescue.
EasyJet said flight bookings from Britain jumped over 300% and holiday bookings surged by more than 600% week on week after the government indicated on Monday that travel could restart from mid-May.
Holiday company TUI UK said that its bookings surged 500%, while holiday and budget airline group Jet2 said its bookings were up 600%.
This summer is make-or-break for many airlines and holiday companies that are struggling to survive with close to a year of almost no revenue due to pandemic restrictions. Without it, many will need extra funds after burning through cash reserves.
Travel site Skyscanner said flight bookings made on Monday were 69% higher than the previous day, with visitors to its flight checking website jumping 55% immediately after UK Prime Minister Boris Johnson’s announcement of a roadmap for easing lockdown restrictions. Spain was the top destination.
Of course, all this assumes that other countries will let the Brits in. Expect countries to require some sort of vaccination passport, and even then there might be issues because of new virus strains.
At least in the U.S., we’re one big country. When the lockdowns lift and we’re “free to move about the country,” expect hotel stocks to join the airline industry in seeing a big surge as well.