EasyJet, Tui shares higher despite travel chaos across the UK

[MongiIG]

EasyJet (EZJ) and Tui (TUI) are both higher as the companies are working hard to overcome the difficulties.

 

 

 Jeremy Naylor | Writer, London | Publication date: Monday 30 May 2022 

Travel chaos in UK

Despite queues at airports, ferry terminals and mainline train stations in the UK as schools close for half-term, easyJet (EZJ) and Tui (TUI) are both higher as the companies are working hard to overcome the difficulties.

(Video Transcript)

As the half term week starts here in the UK, we've seen travel disruption around so many different areas of the country for so many very different reasons.

Airlines are finding it difficult to get out of some of the hubs in which discount airlines operate. Specifically, easyJet has warned that it's getting very, very behind and has canceled dozens of flights.

We saw software issues going into the back end of last week, affecting the travel going into the weekend. Since then, we've seen traffic restrictions and runway problems as well within some of those discount area hubs like Luton and Stansted and so forth, causing all sorts of problems.

TUI issues apology

TUI has apologised and blamed a number of different reasons. It's not getting people out on its package holidays.

Meanwhile, ferries from Dover, especially have been hit. And Eurostar has also seen traffic chaos at the beginning of the journey in London. At the international train station, St Pancras, long queues have also been seen in other areas around the country where we're seeing a lot of travel disruption.

TUI/easyJet charts

Let's take a look at what's happening at TUI. Despite the fact we've got these what appear to be headwinds and problems, we are up in today's session for TUI here. This is the Londo- listed stock, but just shy of the £2 level. Current trade is up 5.6%.

easyJet as welli s up for a fourth day in a row, maybe surprisingly. We're at levels not seen since the 5th of May. Some may think it can't get any worse. And the fact that easyJet is doing something about it means that we've got upside potential here. This is not a trade recommendation, it's just an indication of what's happening in the market.

But certainly at the moment, travel chaos does seem to be the name of the game as we go into this week, which, of course, ends with the platinum celebrations for the Queen's Jubilee. So ahead of that travel disruption at ferries, at train terminals and also airlines around the major discount hubs.