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Travel firms suffer stock market hit

Travel firms have taken a hit in the stock market amid fears of a second lockdown in the UK.

Positive coronavirus cases reached a 3,000 per day seven-day rolling average in the UK in the last week, levels last reached in May.

Airlines were among the worst-hit in the stock markets. British Airways, Aer Lingus and Iberia parent International Airlines Group closed Friday down 14.6%.

EasyJet closed down 9.2%, Ryanair was down almost 4% and Wizz Air was down 5%. Rolls-Royce, which makes aircraft engines, lost 5.1%.

Cruise giant Carnival Corporation closed down 7.9% and InterContinental Hotels Group, which owns Holiday Inn and Crowne Plaza among others, was down 4.5%.

Tui was down just over 4% and On the Beach was down 5.2%.

Joshua Mahony, senior market analyst at IG, told Sky News: “The threat of further a second round of COVID restrictions in London has dented confidence, with the travel sector in particular feeling the heat as we head into the weekend.

“From a tourism perspective, the rise in Covid cases in the UK does little to help boost sentiment around travel stocks. While we have become accustomed to the UK imposing quarantine restrictions on visitors from specific countries, the prospect of quarantines on UK tourists holidaying abroad would put a major stake in heart of the travel industry.”

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