Shares of International Consolidated Airlines Group SA (LON: IAG) fell more than 6% after Davy Research analysts downgraded the stock from “Outperform” to “Neutral”.
Moreover, the UK government announced travellers from France would have to quarantine on their return, sending leisure and travel stocks lower.
Last month, Asktraders.com reported that the owner of British Airways is looking to raise 2.75 billion euros to fight losses of around 4 billion euros amid the pandemic. Davy’s analysts now predicted the fundraising will be “at least 50% dilutive”.
“We don’t know yet whether their restructurings will enhance or weaken competitive positioning when we see other global airlines restructuring”, Davy said.
In another blow to the UK travel industry, France is placed on the quarantine list. This means that all travelers will have to go to quarantine once they return to the UK.
IAG share price is trading more than 6% lower at 2.10. It is likely that IAG share price will head towards the next support line at 1.95.