“Quarantine roulette” brings more woes for troubled airlines
Sudden new travel restrictions are yet another headwind for the aviation and holiday sector. Most carriers have had to cut capacity. Alex Rankine reports.

The travel industry is in “a tailspin”, says The Observer. While other sectors of the economy are opening back up, the government’s sudden imposition of quarantine measures on people returning from France, Malta and the Netherlands last week did more than wreck millions of holiday plans. It also puts at risk the hundreds of thousands of British jobs that depend on airports and travel operators.
Second-quarter figures from tour giant TUI provided a vivid illustration of the damage done to airlines by the pandemic. The Anglo-German business reported a 98% fall in revenue in the period, which coincided with lockdown, says Christopher Thompson on Breakingviews. Operating cash flow in the first nine months of TUI’s financial year hit “negative €2bn”. That has forced it to take loans from the German government. TUI can only pray that a surge in advance bookings for next summer means that 2021 will be a better year.
Who will be next?
This summer has been an introduction to “quarantine roulette”, says Alistair Osborne in The Times. Which destination will be banned next? Now investors can join travellers in trying to anticipate governments’ sanitary edicts by gambling on travel companies. TUI says a rights issue is “one option”, but few will be mad keen to buy into a share dilution at a business valued at £2bn but with debts of “€7bn if you strip out customer deposits”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Britons are rapidly concluding that the only sure path is to “stay at home in the rain”, says Nils Pratley in The Guardian. Ryanair doesn’t anticipate a speedy improvement – it has cut flight capacity for the coming months by 20%. The budget airline’s plan to operate at 70% of normal levels in September had always been a long shot; easyJet’s 40% target looks more appropriate for this pandemic-scarred summer. Ryanair can afford the misstep. A low cost base and a resilient balance sheet make it one of the stronger European airlines, says Philip Georgiadis in the Financial Times. At the end of June it had more than €3.9bn in cash.
EasyJet announced this week that it will close hubs at London Stansted, London Southend and Newcastle in response to reduced demand. The airline has taken on more debt to get through the crisis, but remains one of a handful of global carriers still boasting an investment-grade credit rating, says Lex in the same paper. Fare competition between the airlines has all but disappeared. Passengers have either decided to pay up to fly, or won’t go at any price. “Profitability” is “a long-haul destination”.
At least one carrier, however, is looking to the long term. Hungary-based Wizz Air plans to open a new base at Gatwick, aka easyJet’s “fortress”, says Simon Calder in the Independent. The initial expansion is modest, but Wizz Air’s UK boss Owain Jones says it is “a statement of intent”.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019.
Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere.
He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful.
Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.
-
Company directors face new ID checks – how to avoid paying hundreds on verification
Company directors could end up paying hundreds of pounds to comply with new identity checks but it is possible to comply without paying a penny
-
Will petrol prices rise this year?
Petrol has been relatively cheap in the UK so far in 2025, hitting a four-year low in May. But with conflict in the Middle East making the price of oil more volatile, will petrol become more expensive?
-
Spectra Systems: a 'boffin-led' tech stock with business acumen
Opinion Patient investors will get paid well as they wait for success from Spectra Systems, a promising Aim stock, says Jamie Ward
-
How amateur investors could rescue UK stocks
Private investors must be the beneficiaries of a stock market recovery, says Bruce Packard – not brokers and fund managers
-
The British railway industry is in rude health – here's why investors should jump aboard
The railway industry has bounced back from the devastating impact of the pandemic and is entering a new phase of development – and profitability
-
A cyclical case for UK stocks
Opinion Depressed margins and relatively low valuations mean the UK market could rally strongly as conditions improve, says Cris Sholto Heaton.
-
Aberforth Smaller Companies Trust: a fund that lets you buy Britain on a triple discount
Opinion If UK stocks return to favour, Aberforth Smaller Companies Trust, a value-focused investment trust, should perform well, says Max King
-
Infrastructure investing: a haven of stable growth amid market turmoil
From booming construction in emerging markets to digital and green transitions, the infrastructure sector offers security, returns and long-term opportunities
-
The costly myth of “sell in May”
Opinion May 2025's strong returns for US stocks have once again shown that putting too much weight on seasonal patterns will only make investors poorer, says Max King
-
Who’s driving Tesla?
As Elon Musk steps back from government with his eyes on the stars, investors ask if he’s still behind the wheel at his electric-car maker.