Airlines stocks have taken a hit after the European Union imposed travel restrictions within the open market. The borders will stay open, but travelers will be asked to provide a negative test before leaving their country and required to quarantine when they enter a new member state.
- The EU parliament is now deciding whether they will require proof of vaccinations for future travel.
- Lufthansa's CEO announced that the company is currently losing $600K per hour due to the restrictions.
- The new restrictions contravene the EU's policy of freedom of movement. This same principle has prevented a complete lockdown of national borders during the pandemic.
- Stocks in the European travel and leisure industry fell an average of 2.8% in an hour following the announcement.