Shares in U.K.-listed airline and travel companies, including British Airways PLC (BAY.LN), Carnival PLC (CCL.LN) and Thomas Cook Group PLC (TCG.LN) fell sharply on the London bourse Monday morning following the outbreak of the Swine Flu in Mexico City, which has spread to the U.S.

Blue Oar Securities analyst Mark Brumby says it's bad news for the travel industry, which is already struggling from falling demand as consumers stay at home during the economic crisis. The industry was hit hard by outbreak of the severe acute respiratory syndrome, better-known as SARS, in Asia a few years ago.

"Without scare-mongering, it is worth pointing out the current outbreak of swine flu, which is centered on Mexico but which has spread to the U.S., is unlikely to do much to encourage travel.

"Indeed in recent years the SARS and avian flu scares have depressed travel volumes materially," he added.

A spokesman for British Airways PLC (BAY.LN), which operates four flights a week to Mexico City, told Dow Jones Newswires Monday that it's "operating as normal".

Carnival, Thomas Cook, easyJet PLC (EZY.LN) and Ryanair Holdings PLC (RYA.LN) couldn't immediately be reached for comment.

British Airways is the biggest faller on the bellwether FTSE 100 index, down 19 pence, or 11%, at 145 pence, with Carnival in second place, down 140 pence, or 7.2%, at 1800 pence at 0719 GMT.

Thomas Cook shares fell 20 pence, or 7.1%, at 263 pence. The FTSE 100 index is down 1.6%.

Company Web site: http://www.britishairways.com

-By Lilly Vitorovich, Dow Jones Newswires; 44-0-207 842 9290; lilly.vitorovich@dowjones.com
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