The block on flights from South Africa ‘lands’ the shares of the airlines

Airline stocks hit a record high on Friday, falling the most since the pandemic began as European countries banned flights from South Africa to slow the spread of a new worrying mutation found on the continent.

The United Kingdom has already announced that it will suspend flights from South Africa and many of its neighbors for two days, with British authorities adding that travelers from those countries arriving in Britain from on Sunday and after.

Germany has also announced that it will allow airlines to transport only German nationals who want to return to the country, Australia has warned of a possible border closure on flights from South Africa, and European Commission President Ursula von der Leyen has warned. , suggested putting an “emergency brake” on air travel from South Africa.

The news evoked the bad memories of the previous year with the restrictions on international air travel due to the pandemic, putting suffocating pressure on the shares of the airlines.

The Bloomberg EMEA Airlines index plunged up to 12%, the highest since March 2020. IAG SA, a parent of British Airways, fell 13% in London, Deutsche Lufthansa AG fell more than 11%, Ryanair Holdings Plc recorded losses of 10.5% and Air France-KLM fell 8.6%.

The same “flight plan” is followed by the Greek Aegean, which currently records losses of more than 6%.

Following the lockdown in Austria, flight restrictions

Restrictions on flights from South Africa mark an additional blow to the aviation industry, whose recovery after a “pandemic landing” last year slowed in November due to a fourth wave sweeping Europe, leading to lockdowns in several countries.

Restrictive measures in Austria and elsewhere have cast a heavy shadow over air traffic as they have whetted the appetite for festive travel, according to Ryanair CEO Michael O’Leary.

“It’s the worst Christmas present the aviation industry could think of,” said Nick Cunningham, an analyst at Agency Partners in London.

Airlines, one of the sectors hardest hit by the coronavirus pandemic, had been slowly recovering since June, when countries began lifting restrictions on cross-border travel, and received an additional boost this month, mainly In the field of long-distance travel, the US has reopened its borders to European visitors and others, but their recovery has already begun to slow.

The troubling new coronavirus strain first identified in South Africa has sparked widespread concern among health officials around the world, suggesting that other countries could close their borders. Israel and Singapore have also restricted access from South Africa, and the EU’s “emergency brake” allows EU member states to act quickly to reduce risks.