By Samuel Indyk
Investing.com – Shares of EasyJet (LON:EZJ), Wizz Air (LON:WIZZ), and British Airways parent IAG (LON:ICAG) were all trading on higher on Thursday after recent reports suggested that the UK’s strict rules for international travel were set to get an overhaul as soon as this week.
The Financial Times reported that vaccinated travellers entering England will be subjected to lighter testing requirements which could also include a revamp of the traffic light system.
A government insider told the FT that people who are fully vaccinated will no longer need to take a Covid-19 test before entering the UK.
The news was hinted at by the UK Health Secretary Sajid Javid in the Commons earlier this week when asked whether the more expensive PCR tests for fully vaccinated passengers would be removed for the cheaper lateral flow tests.
“I don’t want to pre-empt the statement by the transport secretary,” Javid said, “but I believe that when he makes the statement, he will be pleased.”
Separately, the traffic light system looks set to go, with the Green and Amber categories set to merge into one group of countries that is safe to travel to. The Red list will remain and will still require arrivals from those countries to quarantine upon entering England.
The sector is also benefitting from positive comments from Ryanair (LON:RYA) who increased their growth forecast for the next five years to 50% from 33% previously. The Irish-based airline now expects to carry over 225 million passengers by March 2026.
Ryanair CEO Michael O’Leary also praised the performance of the new B737 Gamechanger aircraft, of which it is expected to take delivery of 210 over the next five years.
“The performance of the B737 Gamechanger aircraft this summer has exceeded our expectations,” O’Leary said. “Operational reliability, fuel consumption, and lower CO2 emissions have so far exceeded guidelines with very positive passenger and crew feedback to these new, more fuel efficient, quieter aircraft.”
Rolls-Royce (LON:RR) usually benefits from an opening up of travel and easing of restrictions but the aerospace company has got a double-boost today after the UK, US, and Australia announced a new security pact, which will see Australia build nuclear-powered submarines for the first time.
Rolls-Royce was mentioned in the UK’s statement.
“The UK has built and operated world-class nuclear-powered submarines for over 60 years,” the statement read. “We will therefore bring deep expertise and experience to the project through, for example, the work carried out by Rolls Royce near Derby and BAE Systems (LON:BAES) in Barrow.”
UK-based airlines flying as English travel rules set to be overhauled
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