Will travel and leisure stocks soar as Covid-19 fears subside?
The short-term prospects for travel and leisure companies continue to be extremely challenging. However, their financial positions and the long-term prospects for the industry suggest they offer significant recovery potential.
The travel and leisure sector has been affected to a greater extent than most industries by Covid-19. For instance, airlines such as IAG (LON:IAG), easyJet (LON:EZJ) and Jet2 (LON:JET2) have recorded exceptional falls in revenue during the course of 2020. It’s a similar story for accommodation providers such as Booking Holdings (NASDAQ:BKNG) and Hostelworld (LON:HSW). Their share prices have come under pressure as investors have questioned their capacity to survive further operational weakness. While the sector faces further challenges in the short run as the wait for a Covid-19 vaccine continues, industry operators with the financial means to survive short-term…