Market Report: New tests for passengers lift spirits in airline sector

Investors jumped back onboard airline stocks today after a long-awaited breakthrough on passenger Covid-19 testing lifted spirits in the sector.

Transport Secretary Grant Shapps said last night that people arriving in England would be able to reduce their quarantine period by up to two-thirds on receipt of a negative Covid-19 after five days of isolation.

While passengers will have to fund the cost of a private test themselves, the launch of the scheme for international arrivals from December 15 was seen as a step in the right direction.

British Airways owner International Airlines Group added 8.4p to 174.9p in the FTSE 100 index, while shares in low-cost carrier easyJet and holidays giant TUI jumped 9% and 6% respectively, up 46.4p to 518.2p and 50.6p to 830p in the FTSE 250.

Their progress represented further momentum in what’s becoming known as the “reopening trade”, with leisure stocks also continuing to benefit from yesterday’s positive update on the Oxford vaccine from AstraZeneca.

Premier Inn hotels group Whitbread added 137p to 3,218p and cinemas business Cineworld put on another 3.68p to 58.98p following its debt restructuring announcement on Monday.

Commodity-based giants including Anglo American and BP were also more than 2% stronger as sentiment overall was boosted by relief that Donald Trump’s administration will co-operate with Joe Biden’s transition team.