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By Laurence Frost
PARIS, Aug 14 (Reuters) - Britain's decision to reimpose
coronavirus quarantines on France and the Netherlands has
sparked dismay among airlines and airports struggling to
overcome the industry's worst crisis.
European airline shares tumbled on deepening concerns that
the weaker than hoped travel recovery could yet stall or be
reversed by new outbreaks and restrictions.
Shares in EasyJet, which is the most exposed carrier
with UK-France routes accounting for 14% of capacity, dropped by
6.8%. The budget airline made no immediate schedule changes but
said customers could cancel for free exchanges or vouchers.
With long-haul traffic flat-lining, Citi analyst Mark
Manduca said, the new restrictions hit point-to-point leisure
travel that had been viewed with more optimism and dented
already fragile confidence in the broader travel sector.
"It's not so much about this summer or even this year, which
is a write-off," Manduca said. "It's more about direction of
travel, a step in the wrong direction for a market that's trying
to recover."
British holidaymakers flocked home early after their
government removed France, the Netherlands, Malta, Monaco and
two Caribbean territories from a list of unrestricted
destinations, with effect from 0300 GMT on Saturday.
Shares in British Airways parent IAG fell 5.7%
while Air France-KLM lost 5.6% and Ryanair
5.2%.
The UK move comes a day after airlines lowered their
European outlook, with the International Air Transport
Association (IATA) predicting a 60% decline in 2020 passenger
numbers.
It follows a similar UK decision last month to remove top
destination Spain from the so-called safe list. Other countries,
including Norway, have also added restrictions as COVID-19 case
numbers spike in some areas.
IATA on Friday criticised Britain's "stop-go-stop" approach
to travel restrictions, saying it put 780,000 UK jobs at risk.
"The urgent priority is to implement pragmatic alternatives
to quarantine," the airline body said on Twitter.
The 14-day quarantine is a major deterrent against UK
outbound travel in the latter half of August and September - a
period that Olivier Jankovec, head of airports grouping ACI
Europe, said is "not insignificant by any means".
Determination to avoid a return to total lockdown is driving
tougher travel curbs as well as policy incoherence among
governments, Jankovec said.
"Why on earth are we reopening nightclubs and at the same
time imposing new travel restrictions?" he added. "You're much
safer in an airport or on a plane than in a nightclub."
(Reporting by Laurence Frost
Additional reporting by Sarah Young and Joice Alves in London
Editing by David Goodman)
