As Tourism reopens, is it time to invest in hotels and airlines? Speculators think so.
Spanish PM, Pedro Sánchez, gave the official kick-off to the summer vacation campaign last Saturday, inviting all tourists and made a special dedication to internationals by inviting them to visit any of the corners of the country.
Yesterday the government also announced the end of the mandatory quarantine for those who arrive from July the 1st. Spain thus joins the progressive reopening of tourism activity that other neighboring states had already started and the news caused a real revolution for companies in the sector on the stock market.
The Meliá hotel chain rose 26.5%; the air holding IAG, (a multi-national holding company with majority stakes in a number of large airlines including British Airways (100%), Iberia (100%), and British Midland International) rose by 13.4%.
Amadeus advanced 4.7% and Aena Airports 4.9%. Although it was a welcomed rally it really only covered up the losses of 27,156 million euros that they have accumulated in the last three months, since the coronavirus crisis broke across the world since February this year.
There are those who think that the sector has hit bottom and some believe that it could fall even more, speculators responded by buying huge chunks of stocks of a mixed bag of shares in a trend that looks highly likely to continue in the near term.