Rival travel stocks leaped after Thomas Cook's demise, but turbulence remains

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European travel operators and airline stocks enjoyed an initial spike after the news emerged over the weekend that rival firm Thomas Cook had filed for bankruptcy.

"Short-term pains will almost certainly turn into long-term gains for TUI. It has a chance to mop up business that would have normally gone to Thomas Cook and to potentially convince some of its rival's customers to go for some of its more differentiated offerings rather than a bog-standard package holiday," Mould explained.

There is therefore a "major chance" for TUI, he added, but it will require some "very smart marketing." Richard Hunter, head of markets at Interactive Investor, said the update proved that these are "tough times in the travel industry" but stressed that TUI's diversified business model and digital aspirations render it a "different animal" to its fallen rival.Shares of Jet2 owner Dart Group rallied almost 10% at Monday's open to peak on Tuesday at 928p per share, and were still trading at 904p per share on Wednesday afternoon.

 

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