Airline stocks soar as economies begin to reopen around the world

Airline stocks soar on signs of travel resumption.

Shares in airlines and holiday companies were among the biggest risers on Tuesday as countries around the world announced plans to further reopen their economies.

British Airways owner IAG soared to a 20% high on the day, whilst easyJet saw gains of over 17%.

German-based travel agent, TUI Group, saw a whopping 35% gain.

A few hours later, US airline stocks all opened significantly higher, with Spirit Airlines leading the way with a 14% gain.

Non-aviation travel companies such as Norwegian Cruise Line Holdings and Royal Caribbean Cruises also saw their stocks climb.

The promising signs come a day after Lufthansa secured a €9 billion rescue deal from the German government.

The deal gives the government a 20% share in the ailing airline and also gives Berlin a veto in the event of a hostile takeover bid for the flagship carrier.

Ryanair said it will contest the German aid package because it is against EU rules as it will allow Lufthansa to “engage in below-cost selling” and make it harder for his budget airline to compete.

“Ryanair will appeal against this latest example of illegal state aid to Lufthansa, which will massively distort competition and level playing field into provision of flights to and from Germany for the next five years,” Michael O’Leary, Ryanair’s chief executive, said.