British Airways owner IAG jumped 4% in the FTSE 100 index ahead of several countries, including Turkey, being removed from the government’s red list of mandatory PCR testing for fully vaccinated travelers also to be deleted.
The industry has been inundated with optimism several times this year, only to disappoint investors.
IAG shares, for example, are still below their start-of-year level and those who support easyJet now face the prospect of seeing their stakes diluted unless they resume their rights in a fundraiser of £ 1.2 billion.
Bloomberg reported today that easyJet founder Stelios Haji-Ioannou and his family have already chosen to sell their rights as part of a move leaving them an overall 15% stake. Stocks came under more pressure, falling 9.9p to 596.73p.
Elsewhere in the travel industry, package travel company Jet2 cheered 4% or 51.45p to 1,212.45p and premier hotel group InterContinental improved 82% to 4,642%. Its performance contributed to the rise of the FTSE 100 index by 25.48 points to 7,052.39.
Other prominent players include Lloyds Banking Group, as Deutsche Bank analysts said the city underestimated how much a half-percentage point hike in interest rates would benefit. to net interest income over the next two years.
The bank raised its price target from 3p to 60p, down from 45p today after rising just over 0.2p.
Mining stocks, meanwhile, continue to struggle amid falling iron ore prices, with Anglo American the biggest casualty after being downgraded by Morgan Stanley.
Shares fell 3% or 97p to 2,721.5p and Rio Tinto fell 109.5p to 4900.5p.
The FTSE 250 index, which rose 144.68 points to 23,778.80 points, was led by Restaurant Group in the hope of a recovery in airport activity. Stocks charged 5% or 6p at 111.4p, just ahead of DIY channel Wickes following a better-than-expected trade update.
Shares rose another 12p to 249.2p after analysts at Peel Hunt raised their price target to 360p and said the chain was “severely undervalued”.
