UPDATE 2-UK scraps quarantine for fully vaccinated Britons in boost for airlines

* Vaccinated avoid quarantine from some countries from July
19

* Those returning from amber list countries must still take
tests

* Children exempt from self-isolation but must test

* Fully vaccinated non-Britons must still quarantine
(Adds industry reaction, share price)

By Sarah Young

LONDON, July 8 (Reuters) - Fully-vaccinated Britons
returning from medium-risk amber list countries will no longer
have to quarantine when they arrive home from July 19, transport
secretary Grant Shapps said on Thursday.

The rule change will be a huge boost to airlines and the
travel industry which have been brought to their knees by 15
months of restrictions. In Britain, 65% of adults have been
fully vaccinated, opening up travel for millions.

"I can confirm today that from the 19th of July, UK
residents who are fully vaccinated through the UK vaccine
rollout will no longer have to self isolate when they return to
England," Shapps said.

The need to quarantine on return had prevented a travel
recovery. Under previous rules, those returning to Britain from
its top destinations, Spain, France, the United States and
Italy, all had to self-isolate for up to 10 days.

Shares in British Airways-owner IAG and easyJet
both traded up 2% immediately after the news, which will
also be welcomed by Southern European countries eager for UK
tourist revenues.

"This move means Europe is turning green for people who are
fully vaccinated," easyJet chief executive Johan Lundgren said
in a statement. "Now millions will finally be able to reunite
with family and loved ones abroad or take that long-awaited trip
this summer."

The rule change only applies to amber list countries. For
countries on the UK's high-risk red list, fully-vaccinated
Britons will still be required to self-isolate in a hotel.

Shapps said that Britons returning from amber list
destinations would still have take a COVID-19 test before they
arrive home and then a second test on or before day two.
Children under the age of 18 will not have to self-isolate but
will need to take tests.

Bookings for the crucial peak late July and August holiday
season, when the industry makes most of its profit, are expected
to soar following the rule change.

Airlines and holiday companies like TUI and Jet2
have repeatedly called for an end to quarantine but it
will however remain in place for non-Britons for now, said
Shapps, disappointing the industry.

"We're working to extend our approach to vaccinated
passengers from important markets and holiday destinations,
later this summer, such as the United States and the EU," he
said.

He said he would provide an update in due course.

British Airways said that while it was pleased with Shapps's
announcement, it wanted to see progress on scrapping quarantine
for non-Britons.

"The government needs to quickly extend this to all
vaccinated travellers, agree a reciprocal deal with the US, add
more countries to the 'green' list and reduce the need for
unnecessary, expensive tests," BA chief executive Sean Doyle
said.

(Reporting by Sarah Young, William James and Paul Sandle;
Editing by Kirsten Donovan)