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FTSE 100 predicted to open flat as investors digest airline woes latest

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<p>Airlines have been hit by the latest UK travel guidelines</p> (PA Wire)

Airlines have been hit by the latest UK travel guidelines

(PA Wire)

The FTSE 100 was expected to open unchanged on Friday, as investors digested the latest travel disruption updates.

Shares in airline groups such as easyJet and British Airways’ owner IAG fell yesterday after it emerged that no more countries will be added to the green list. 

In addition, Portugal was dropped from the quarantine-free travel list, in a blow to the travel sector.

Johan Lundgren, easyJet’s chief executive, yesterday said: “While our European fleet is gearing up for summer as European governments open up travel for their citizens, the UK government is making it impossible for airlines to plan while consumers are left grounded in UK.”

Watch: FTSE 100 'milestone' as it tops 7,000 mark for first time in more than a year

CMC Markets traders today expected the blue chip index to open unchanged at 7064. It lost 43.65 points yesterday.

Michael Hewson, chief market analyst at CMC Markets UK, said: “Yesterday’s continued rebound in UK services sector activity, which hit a record high, is yet further evidence of a strong UK economic rebound in Q2, however it can’t disguise the fact that there are still significant areas of the economy that are continuing to struggle, travel and leisure being a case in point, where furloughed employees still number at 2.1m.” 

He added that today’s big headline item is the US May non-farm payrolls report. A Financial Times report said US job creation is expected to have accelerated sharply last month.

Watch: Will the full easing of restrictions in England go ahead on June 21?

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