Business

Monarch demise boosts airline shares

Trader watching monitor Image copyright AFP

The collapse of Monarch Airlines led to a rise in airline shares as investors expected them to benefit from the removal of a competitor.

Budget airline easyJet's shares finished 5.2% higher, Ryanair rose 3.9% and BA owner IAG was 2.4% higher.

EasyJet was the biggest riser on the FTSE 100, with the benchmark share index up 66.08 points at 7,438.84.

Neil Wilson, senior market analyst at ETX Capital, said Monarch's failure was "good news for rivals".

"It means fewer seats to fill sector-wide - more than 6 million in the case of Monarch," Mr Wilson said.

"This should mean Ryanair and EasyJet can comfortably improve load factors, even if the reputation of the former has suffered of late. This should be positive for margins despite pricing pressures," he added.

The other area to see notable gains was the housebuilding sector, after Theresa May's pledge at the weekend that the government would find an extra £10bn for the Help to Buy scheme.

Shares in Persimmon and Barratt Developments were up by more than 4% on the news.

On the currency markets, the pound was down 0.94% against the dollar at $1.3273 and was 0.4% lower against the euro at 1.12960 euros.