Airlines gain altitude as Covid restrictions ease

Major airlines flew high yesterday amid evidence passengers were once again taking to the skies as pandemic travel restrictions ease.

British airways owner IAG was the biggest riser on the FTSE 100 – up 7.4pc, or 10.94p, to 158.9p – as investors hoped the industry would see a return to normality.

Sentiment was boosted by an update from budget carrier Wizz Air, which reported a 243pc increase in passengers year-onyear to 7.8m in the three months to December 31 while revenues soared 173pc to £341m. But losses more than doubled to £223m amid surging fuel and staffing costs.

Wizz also predicted demand would be hit in the first three months of 2022 due to the rise in omicron infections. The shares slid 0.2pc, or 8p, to 4250p.

With a spike in demand for halfterm holidays next month, other holiday firms were on the up.

Easyjet rose 5.2pc, or 31.6p, at 635.4p, Jet2 bounced 7.5pc, or 91.5p, to 1305p, and Tui gained 5.4pc, or 13.3p, to 259.3p. Package holiday group On The Beach added 7.8pc, or 22p, to 305p, Holiday Inn owner Intercontinental Hotels rose 2.8pc, or 132p, to 4847p and Whitbread, which runs Premier Inn, was up 2.4pc, or 70p, at 3039p.

The FTSE100 jumped 1.3pc, or 98.32 points, to 7469.78 while the FTSE 250 climbed 1.05pc, or 227.37 points, to 21873.08.

The blue-chip index continued to benefit from bargain hunting as well as the popularity of its more defensive constituents such as banks and mining firms.

However, market jitters lingered amid tensions between russia and Ukraine and ahead of the Federal reserve’s update. oil stocks bobbed higher as the risk of war in eastern Europe drove crude prices to levels not seen for more than seven years at close to $90 a barrel. It is feared a conflict will disrupt supplies from russia.

Shell added 5.4pc, or 97.8p, to 1909.8p while BP jumped 3.8pc, or 14.45p, to 394.1p.

Banking stocks were also boosted by a note from Barclays which predicted the sector would deliver ‘stronger revenues’ than predicted and raised target prices on several institutions.

among these were HSBC, up 2.6pc, or 13.3p, to 522.7p, NatWest, which rose 2.7pc, or 6.4p, to 244.2p, and Standard Chartered which climbed 2.3pc, or 22.8p, to 524p.

Lloyds was also up 2.2pc, or 1.12p, at 52.03p while Barclays lifted 2.8pc, or 5.5p, to 202.2p.

Meanwhile, resource giant Glencore gained 2.6pc, or 10.15p, to 399.1p and BHP added 3pc, or 69.5p, to 2398p. Rio Tinto also rose 2.3pc, or 123p, to 5434p despite a target price cut from Goldman Sachs. However, it was not all smiles in the sector, with Mexican miner Fresnillo sinking 14.6pc, or 117.2p, to a 20-month low of 687.8p after missing its silver production targets for 2021.

The group also cut its 2022 guidance as it grappled with staff absences caused by Covid as well as changes to labour laws limiting its ability to use contractors, leading to shortages of equipment.

Sensyne, the medical data firm founded by Labour peer Lord Drayson, shot up 27.9pc, or 4.25p, to 19.5p after it secured a £11.4m financing package that will provide it with funds while it explores options to sell itself or conduct a management buyout. The deal comes nearly two weeks after it said it could go bust next month.

Bus firms Stagecoach and National Express were in focus as their £1.9bn merger was put on hold as the Competition and Markets authority probes the tie-up.

It has ordered them not to sell any UK assets until its review is completed. Stagecoach rose 1.6pc, or 1.5p, to 90.1p. National Express gained 1.4pc, or 3.6p, to 260p.