Hopes for a late summer flourish by airline and travel stocks appear to be fading fast after the sector suffered another gloomy session on Tuesday morning.
Their shares soared at the end of July, but a sustained recovery hasn’t materialised as investors realise that the relaxation of travel restrictions has come too late for the industry to make up lost ground this year.
British Airways owner IAG and InterContinental Hotels were both 2% lower, while TUI was one of the high-profile casualties on the FTSE 250 index. Low-cost airline easyJet showed the wider trend, with shares now at 794.8p compared with 889p on July 28.
The FTSE 100 index, meanwhile, held firm as yesterday’s jitters following weaker than expected figures from the Chinese economy showed signs of easing.
The top flight was 5.78 points higher at 7,159.76, reflecting a 6% results-day bounce by BHP as the mining giant’s shares traded at their highest level in a decade.
As well as travel stocks, companies in the financial sector were under pressure as Legal & General retreated 3.8p to 266.6p and NatWest eased 2.5p to 215p.
The City also removed the welcome mat for new Lloyds Banking Group boss Charlie Nunn, with shares off 0.65p at 45p during his second day at the helm.
The FTSE 250 index was just 2.6 points lower at 23,710.07, with publisher Future lower despite Deutsche Bank upgrading its target price to 4,138p following yesterday’s acquisition of Dennis. Shares eased 66p to 3,804p.
One of the second tier’s strongest performances came from Genuit, the water and climate management business. Its shares rose 4% or 28p to 676p after upgrading its full-year forecasts and declaring a 4p a share dividend for the first six months of the year.