Airlines' shares rise as EU set to let in US tourists this summer
European Commission President Ursula von der Leyen said the EU plans to open its doors to American tourists who’ve been fully vaccinated. Picture: Aris Oikonomou/ AP
Airline shares on both sides of the Atlantic, including those in the Aer Lingus owner IAG, Ryanair, Lufthansa, and United Airlines rose sharply on the prospects that the EU will make it easier for international tourists to travel in the coming months.
By early summer, countries of the EU and beyond aim to issue vaccine passports that would let those who have been inoculated freely cross borders. Some places – Australia and New Zealand, for instance, and Singapore and Hong Kong – are joining together to create “travel bubbles” that allow citizens to visit without mandatory quarantines.
And governments are drawing up lists of vaccines and tests they deem sufficiently effective to permit entry. The trend has given a lift to shares in airlines, with Lufthansa rising as much as 5% on Monday and IAG which owns Aer Lingus, British Airways, and Vueling climbing almost 4.5%. Ryanair shares also gained, by 2.5%, and in the US, shares in United Airlines rose 1%.
“There’s optimism that we're getting a little closer to seeing some form of travel this summer, especially in the transatlantic market,” said John Strickland, owner of aviation advisory firm JLS Consulting in London.
“Airlines have done a lot of the spadework on digital travel passports and testing, and there's a huge impetus on governments to get some travel going,” he said.
Though the details are still being negotiated, the EU aims to introduce vaccine passes meant to ease travel by June. Ursula von der Leyen, president of the European Commission, said the EU plans to open its doors to American tourists who’ve been fully vaccinated.
For travel within the EU, members states will issue “digital green certificates” intended to prove that holders have been vaccinated, recently undergone a negative test, or recovered from the coronavirus.
And EU member states may accept vaccination certificates issued by non-EU countries. Greece, for example, allows residents of the US, UK, United Arab Emirates, Israel, and Serbia to visit without a quarantine, if they can show they’ve gotten any of at least nine vaccines.
The International Air Transport Association said it was “encouraged” by Ms von der Leyen’s comments, but added the commission must work with airlines and ensure “clear, simple and secure digital processes for vaccination certificates”.
United Airlines said it is adding new seasonal routes out of the US to Athens, Dubrovnik, and Reykjavik – places expected to be open to US tourists this summer.
One concern is huge queues at borders due to stringent document checks that must be processed, so arriving passengers can’t use the electronic gates.
London’s Heathrow Airport is reporting lines at the immigration desks of as long as six hours, and says police have had to be called in to calm travellers furious about the long waits.
• Bloomberg and Irish Examiner
