European travel stocks are still nowhere near their pre-coronavirus levels

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The Stoxx 600 travel and leisure sector sank 42% in the first quarter of 2020. It recovered only marginally in the second quarter.

European economies have begun to reopen during the second quarter as infection rates have slowed. However, this has been done gradually and there are still many travel restrictions in place."The summer will be an artificial boost," Manduca from Citigroup said, forecasting some structural changes in the wider airline sector.European travel and leisure stocks have rebounded in recent weeks but still have a long way to go before returning to pre-crisis levels.

He added that believing the sector would rebound to pre-crisis levels in the next six to 12 months is "too optimistic."

 

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