Mounting fears over Ebola and the UK’s own preparations to fight the deadly virus have seen travel industry share prices tumble.
This week Heathrow became the first UK airport to introduce passenger screening for those flying into the UK from countries most at risk of the disease, including Liberia, Sierra Leone and Guinea. Passenger checks are also set to be extended to both Gatwick and Eurostar terminals next week.
Meanwhile, as news of the virus dominated the headlines, shares in tour operators, airlines and cruise lines fell.
In the space of a week Thomas Cook’s price slumped 13.8% to 103p, easyJet fell 8.7% to 1340p and Carnival UK dropped 13.6% to 2155p.
Douglas McNeill, investment director at Charles Stanley, admitted that growing fears about the disease were impacting share prices, although he added that Germany cutting its growth forecast for the year had also prompted fears of a recession.
“It’s not all Ebola, but Ebola is certainly a factor in the mix,” he said. “One of the factors… is that Spain [the first place outside Africa where someone has contracted the disease] features heavily in the media.”
McNeill added it was difficult to say how long the situation would last.
“It’s impossible to say - Sars is not a bad benchmark, that came and went in six months.”
"Ebola is an extra reason why buyers will sit on their hands and not do anything. It’s probably a dribble of sellers and no buyers"
Analyst Mark Brumby of Langton Capital agreed that general uncertainty over the situation was leading to the fall in share prices.
“It’s an extra reason why buyers of shares will sit on their hands and not do anything,” he said. “It’s probably a dribble of sellers and no buyers.”
Abta, however, insisted it had not seen an increase in holiday cancellations as a result of Ebola.
“British holidaymakers tend to take a common sense approach to risk when travelling,” the association said. “Apart from a few isolated cases, the Ebola outbreak has been restricted to three countries in West Africa - Liberia, Sierra Leone and Guinea.
“The World Health Organisation is not recommending any travel restrictions as a result of the outbreak. Abta will continue to monitor the situation and advise members as appropriate.”
A Thomas Cook spokespersonal so said the operator was liaising with the relevant authorities to monitor the situation adding: “The only destination in West Africa that Thomas Cook is operating to is Gambia. As such, we see no material impact on our business.
“There are no confirmed cases of Ebola in Gambia, and we have been assured by the government that every precaution is being undertaken to prevent the virus spreading from other areas in West Africa.”