This post was originally published on this site
Shares of easyJet fell as much as 9% on Monday on concerns the airline will have to raise money from investors as the U.K. is looking to impose a quarantine on incoming passengers.
EasyJet EZJ, -8.12% shares fell as analysts at Citi say the airline may have to raise between £700 million and £1 billion ($1.2 billion) after the U.K. government said it is looking to impose a 14-day quarantine on incoming travelers, possibly as soon as the end of May.
“Last night’s initiative by the Government will have two significant consequences for the U.K. airline industry: The sizable monthly cash burn rates will persist through summer (and) a number of customers and industry bodies will increase the volume on their demands for immediate cash refunds to consumers,” the analysts said.
British Airways owner International Consolidated Airlines Group IAG, -4.06% may also have to raise funds, the Citi analysts said. The airline’s chief executive, Willie Walsh, testified to a House of Commons committee the move was “very severe” and that the airline would have to rethink its reopening plans.
IAG shares dropped 3%.
More broadly, the FTSE 100 UKX, -0.51% slipped 0.5% after a three-day break.
