Airspace reopening puts airline and travel shares up this morning

Share prices in British Airways (LON:BAY) and other airlines along with travel groups have all started today in the green after the flight ban was lifted at 21:34BST yesterday.

Rob Hull
shareprices.com - Wednesday, April 21, 2010

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Airspace reopening has been a boost for airline and travel share prices

The six-day flight ban has caused chaos for hundreds of thousands of passengers attempting to return from abroad and has been a huge economic blow for related groups with companies losing millions a day during the disruption.

But with the announcement from the National Air Traffic Service signalling an end to the turmoil last night, share prices in BA, EasyJet (LON:EZJ), Ryanair (LON:RYA) and Aer Lingus (LON:AERL) all boast significant percentage increases so far this morning.

And the share price increase comes despite nearly all groups involved saying their schedules will not be back to normal immediately.

British Airways shares opened 1.33 per cent up this morning at 237p and have continued to rise to a high of 240p, up 2.61 per cent.

The airline was estimating up to £20m losses a day during the six day grounding period, but in a statement issued this morning said: “We are very pleased that the aviation authorities have opened UK airspace to enable us to begin bringing our stranded customers home, as well as working towards normal operations.

“As we have many aircraft and crew out of position, it will take some time to return to our full flying programme. “

Easyjet also followed suit showing an overnight increase of 0.06 per cent on their shares which have risen to a 52-week high of 490p this morning, a 2.61 per cent rise for the budget airline, with prices continuing to trade at 9:30BST at 487.50p.

Ireland-based airlines Aer Lingus and Ryanair also show positive spikes in their share prices, most notably Ryanair with increases as high as 3.92 per cent already today despite the airline restricting more of their flights today than most of the competition.

Both travel group giants, Thomas Cook (LON:TCG) and TUI Travel (LON:TT.), are also showing a share price recovery as they begin to return to normal operations following the passing on the volcanic ash cloud drama.

Thomas Cook share prices sit at 0.31 per cent up at 09:30BST and TUI Travel, owners of First Choice and Thomson, are up one per cent at the same time.

 

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