UPDATE: UK Airline, Travel Shares Down After Swine Flu Outbreak
27 Aprile 2009 - 10:24AM
Dow Jones News
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, which operates four flights a
week to Mexico City, told Dow Jones Newswires Monday that it's
"operating as normal."
Irish budget airline Ryanair Holdings PLC (RYA.LN) doesn't fly
to Mexico City or any other transatlantic city, a company
spokeswoman said.
Carnival, Thomas Cook, easyJet PLC (EZJ.LN), InterContinental
Hotels Group PLC (IHG.LN) and TUI Travel PLC (TT.LN) couldn't
immediately be reached for comment.
British Airways is the biggest faller on the bellwether FTSE 100
index, down 12 pence, or 7.6%, at 152 pence, with Carnival in
second place, down 122 pence, or 6.3%, at 1817 pence at 0748
GMT.
Thomas Cook shares fell 16 pence, or 5.7%, at 267 pence, while
InterContinental shares dropped 32 pence, or 4.8%, at 640 pence.
The FTSE 100 is down 1.2%.
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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