Europe: Airline outlook dims again as new travel curbs threaten summer

Recovery prospects for Europe’s coronavirus-stricken airlines are slipping from bad to worse, as a British minister warned on Tuesday against booking summer holidays and Germany mulled a drastic new clampdown on travel even within the EU. UK consumers should “absolutely” hold off from booking holidays, said Nadhim Zahawi, the minister responsible for vaccinations. “There’s still 37,000 people in hospital with COVID at the moment - it’s far too early for us to even speculate about the summer.” Airline shares, which had gained ground since November’s vaccine breakthroughs, have come under pressure this week amid concern that new coronavirus variants and resulting lockdowns now threaten the all-important summer season. While major carriers have secured liquidity to survive the slump for many more months, analysts say, the latest setbacks mean some may need fresh funds to survive the following winter - tough at the best of times - and weaker airlines may fail. Mounting restrictions and testing demands threaten more “stress and friction” throughout the summer, as well as “a more truncated recovery in demand than investors currently envisage”, Citi analyst Mark Manduca warned in a note. The travel outlook for the Easter break - this year falling in early April - already seems almost hopeless. German Chancellor Angela Merkel told party lawmakers on Tuesday that “no tourist travel should be taking place”, as her government weighed tougher measures.<br/>