Airline shares take off as US relaxes UK and EU travel bans
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Shares in the major transatlantic airlines soared after the US announced it was easing strict Covid-19 travel rules imposed by the Trump administration in the early days of the coronavirus pandemic.
The executive order, renewed by President Joe Biden when he took office, banned citizens from a number of countries from travelling to the US, including the European Union’s Schengen Zone, the UK, and Ireland.
Airlines have been pleading with the administration to lift the ban for months after the UK and EU both lifted restrictions on Americans.
A formal announcement is due later on Monday, but White House pandemic coordinator Jeff Zients told reporters that he expects fully vaccinated Europeans to be able to fly to the US from “early November”.
“International travel is critical to connecting families and friends, to fueling small and large businesses, to promoting the open exchange of ideas and culture,” Mr Zients said. “That’s why, with science and public health as our guide, we have developed a new international air travel system that both enhances the safety of Americans here at home and enhances the safety of international air travel.”
The news saw shares in IAG, owner of British Airways, Iberia, and Aer Lingus, jump by 11 per cent in London. Engine maker Rolls Royce was also up five per cent.
In Europe, shares in Germany’s Lufthansa and Air France-KLM rose by approximately seven per cent.
On Wall Street, American Airlines, Delta Air Lines, and United Airlines — the US carriers with the most international network — all saw their share prices rise despite a broader market sell-off that saw the Dow Jones Industrial Average plummet 650 points.
The US will admit fully vaccinated air travelers from the 26 Schengen countries in Europe including France, Germany, Italy, Spain, Switzerland, and Greece, as well as Britain, Ireland, China, India, South Africa, Iran, and Brazil.
The existing policy had barred non-US citizens who had been in those countries within 14 days.
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