Thomas Cook collapse boosts rival holiday companies, budget airlines

boosted shares in TUI and budget airlines easyJet and Ryanair on Monday as investors pinned hopes on the tour operator's closure cutting capacity in the saturated European holiday market.

The world's oldest travel firm went out of business on Monday, stranding some 600,000 holidaymakers around the globe and sparking the largest peacetime repatriation effort in British history involving some 150,000 travellers.At 0725 GMT, rival tour operator TUI was up as much as 8.4 per cent at its highest since February, easyJet was up 6.1per cent and Ryanair was 2.6 per cent higher, the three top gainers on the pan European STOXX 600 index.

FTSE small-cap listed On the Beach was up 1.6 per cent as hopes it will gain market share offset news the company will book a one-time charge due to the collapse. "The removal of Thomas Cook’s capacity from the market should be positive for pricing in the short term, over the forthcoming winter season," Liberum analysts said in a note.

Budget airlines easyJet and Ryanair benefited from the demise of Monarch Airlines and Thomas Cook is considerably bigger.

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World's oldest travel company Thomas Cook in talks with British government, investors over rescue dealLONDON (REUTERS) - Britain's Thomas Cook is in talks with the government and potential investors about a last-minute rescue deal to fend off a corporate collapse that would send shockwaves well beyond the travel sector.. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »