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Ryanair (RYAAY) Dips on Tougher Travel Rules Across Europe

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Shares of Ryanair Holdings (RYAAY - Free Report) fell 2.4% at the close of business on Jun 28, following tighter travel restrictions imposed in some parts of Europe to contain the spread of the Delta variant of coronavirus. Among several other travel stocks, shares of U.S. carriers such as Delta Air Lines (DAL - Free Report) and United Airlines (UAL - Free Report) also declined on Monday.

While Ryanair carries a Zacks Rank #4 (Sell), Delta and United Airlines carry a Zacks Rank #3 (Hold) each.

The Portuguese government has introduced measures to restrict non-vaccinated travelers from the United Kingdom. U.K. travelers will not be allowed to enter the country without a 14-day quarantine period, unless they are fully vaccinated.

Malta, which is on the U.K.’s green travel list, has also decided to allow only double-vaccinated people from the United Kingdom, beginning Jun 30, when relaxations on traveling to the U.K.’s green-listed places are set to go into effect. Being included in the U.K.’s green list implies that U.K. residents can travel to these places without having to quarantine (provided their COVID-19 test results are negative) on their return.

In Spain, U.K. travelers are required to provide proof of full vaccination or a negative PCR test to be allowed entry.

The restrictions across Europe have been imposed with particular emphasis on U.K. travelers since the Delta variant, which was first spotted in India, has been more prominent in the country.

The stricter restrictions might weigh on Ryanair’s summer travel bookings. The airline recently announced seat additions on flights from the United Kingdom to Malta for July, August and September. Moreover, earlier this month, the European low-cost carrier began operating flights to Faro, Portugal from Teesside, United Kingdom as part of its UK Summer 2021 Schedule.

A Key Pick

A better-ranked stock in the broader Transportation sector is Expeditors International of Washington (EXPD - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Expeditors have rallied more than 65% in a year’s time.

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