20:00 7 April 2026
Long-distance travel has become luxury in Europe
If global fuel supply declines, travel spending may be cut first, but the automotive sector could benefit.
Aviation fuel has been heavily disrupted by the Persian Gulf conflict. Over 50% of EU imports come from this region, while Europe has limited domestic production. Air travel may soon become more expensive, reducing demand and hurting tourism. PMI data show tourism sentiment fell from 55 pts in January to 45 pts in March, below the neutral 50 pts level.
Tourism stocks dropped: TUI by 27%, Ryanair 18%, Rainbow Tours 15%, while Stoxx 600 rose 0.1% and WIG20 gained 7.3%. If fuel prices triple, travel costs could rise about 20%, cutting demand by 10-20%.
Domestic tourism may offset losses. Meanwhile, electric cars gain momentum as battery costs fall, though Stoxx Auto&Parts fell 14%.
(pb.pl)
