FTSE 350 Quarterly reshuffle: UK’s largest companies hit with holiday blues

FTSE 350 Quarterly reshuffle: UK’s largest companies hit with holiday blues

The FTSE Russell announced its June quarterly review on 3 June 2020, evidencing the effects of COVID-19 on investor confidence.

With further restrictions since the last reshuffle in March, the travel industry continues to take a severe beating, seeing Easyjet plc and Carnival plc plummeting off the FTSE 100 after their shares went down almost 50% and 70% respectively since the start of 2020.  In February, Carnival’s luxury vessel, the Diamond Princess, was hit by disaster as over 3700 people were forced to quarantine onboard, in the worst known outbreak outside of China at the time. Following the incident, the cruise operator became the first to put a pause on its cruise operations on March 13, prior to the US and UK officially announcing lockdown.  The company, who had previously been on the FTSE 100 index since 2002, have since made several announcements on extending the pause on its various cruises.   Easyjet, on the other hand, announced that it will resume flying from 15 June, although the airline expects to fly around 30% of the planned capacity flown in Q4 2019, in the final quarter for 2020.  The company also expects to decrease its fleet stating that ‘easyJet believes that the levels of market demand seen in 2019 are not likely to be reached again until 2023’.

Meggitt plc are feeling the effects of reduced market demand in the airline industry and found themselves dropping off the FTSE 100 as a result. The aerospace company stated in its quarterly update: ‘Covid-19 will result in a significant reduction in demand across our civil aerospace business in 2020, as our customers adapt and scale back their activities to reflect the reduction in global air traffic’. Senior plc was also demoted in the reshuffle, falling off the FTSE 250. The company similarly felt the impact of the pandemic on its civil aerospace business, stating ‘customer demand [has been] falling as activity levels have

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