Shares in travel and aviation businesses including the British Airways owner, IAG, easyJet and the aero engine maker Rolls-Royce tumbled on Monday after the government warned the public not to book holidays abroad this summer.
Investors took fright at the thought that the struggling airline and travel sectors could face another summer of lost bookings, as continental Europe struggles with the rollout of vaccine programmes.
Shares in IAG, easyJet, and the package holiday company Tui all lost around 5%, while the Jet2 airline fell almost 7%. Rolls-Royce ended more than 4% lower.
The negative outlook wiped off some of