Shares of International Consolidated Airlines Group (LON: IAG) are rallying in Monday afternoon trading after it was reported by the Financial Times that the US will relax travel restrictions for UK and EU visitors From November.
According to the report, the White Huse will reveal a new travel policy on Monday morning (afternoon in the UK/Europe). It would signal the end of a travel ban that has lasted 18 months and seen travellers who have been in certain regions, including the EU and UK, for the previous 14 days, unable to enter the US.
The Financial Times said the announcement will mean vaccinated passengers from the UK and Europe will be able to travel directly to the US from November.
U.S. SET TO REQUIRE NEARLY ALL INTERNATIONAL AIR VISITORS TO BE VACINATED STARTING IN EARLY NOVEMBER — SOURCES
U.S. EXPECTS TO REPLACE CURRENT TRAVEL RESTRICTIONS THAT BAR MUCH OF THE WORLD'S POPULATION FROM U.S. IN EARLY NOVEMBER — SOURCES
— First Squawk (@FirstSquawk) September 20, 2021
Find out why we picked IAG as one of our best travel stocks to buy.
Predictably, airline stocks with routes to the US have surged on the news. For example, IAG, which accrues a large amount of revenue from US routes, particularly London to New York, has seen its share price jump over 10% to 164.5p.
Lufthansa shares have also rallied, currently trading at 8.67, up over 5.6%.
Travel stocks, including IAG shares, have been severely impacted by the coronavirus pandemic and subsequent travel restrictions. Hotels, airlines, cruises, and car rental companies have all been affected, but could now be a good time to buy travel stocks at a discount? Are IAG shares included on our list of the best travel stocks to buy? Here's what our analyst had to say on the issue…
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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.