Airline stocks take another hit as UK travel corridors close

Airline stocks took another hit on Monday in London as the UK closed travel corridors and enforced requirement of showing negative COVID-19 test proof for anyone entering the country.

Tests must be taken in the three days before travelling and anyone arriving without one could face a fine of up to £500 ($676.50). .

British Airways’ parent company International Airlines Group (IAG.L), stock was down 1.9% by 9am in London and was among the biggest fallers in the FTSE 100 (FTSE^) this morning.

Ryanair (RYA.L) had also dipped more than 1.5%. EasyJet (EZJ.L), meanwhile, was cruising 2.9% lower than its closing price on Friday.

In comparison, the FTSE 100 was trading almost flat.

From 4am on Monday, anyone entering the UK by air, boat or train has to show proof of a negative COVID-19 test.

The hit is the latest in a series of challenges for the travel sector over the past year. The COVID-19 pandemic all but halted travel in March 2020 as widespread lockdowns kicked in to try to contain the spread of the virus.

The new measures will be in place until at least 15 February as ministers deal with a new variant identified in Brazil. The decision to close borders comes nearly a year after the coronavirus was first found in Britain.

READ MORE: Government pledges airport support scheme following travel corridor curbs

The latest data from the International Air Transport Association (IATA) revealed airlines will need another $70-$80bn (£52-£59bn) cash injection in order to get them through the coronavirus crisis.

On Sunday, the UK government said it will move to help support airports amid new curbs to travel regulations in the UK.

The moves came following warnings from groups in the aviation sector that businesses risk collapse under another long travel curb.

Pandemic-fuelled events that have roiled the airline sector

• EasyJet gets $1.87bn liquidity loan injection (January 2021)

• Travel firms cancel flights and holidays due to third lockdown (January 2021)

• UK economy in crisis as countries ban flights and freight from UK (December 2020)

• IATA: Airline industry to make $118bn loss in 2020 (November 2020)

• Coronavirus: Holiday booking sites 'impossible to contact' over refunds and cancellations (November 2020)

• British Airways-owner IAG worst FTSE 100 stock of 2020 (year-long look)

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