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Europe Markets: European aviation sector slammed by EU tax worries


Worries about new taxes on aircraft fuel sent the sector lower on Monday.

Aircraft maker Airbus

slipped 2%, engine maker Rolls-Royce

fell 4%, and Wizz Air

shares declined 3%, as the Financial Times reported that the European Union is due to propose taxes on aviation kerosene for the first time. The proposal suggests increasing minimum rates on fuels used in the aviation and shipping industries over a period of 10 years, the report said.

It was just another piece of bad news for a sector struggling to get over the impact of coronavirus. Germany and France on Friday warned their citizens against traveling to Spain, and the Netherlands reintroduced restrictions on restaurants, bars and nightlife only two weeks after relaxing them.

The broader Stoxx Europe 600

slipped 0.1%, after edging up 0.2% last week.

U.S. stock futures

were lower, after the S&P 500

ended at a record on Friday, while Asian stocks rallied in their first response to China’s cutting reserve requirements for banks.

Information-technology services group Atos

lost 13%, after cutting its revenue and margin targets for the year as it also announced plans to cut 1,300 jobs in Germany.

The Daily Mail & General Trust

rose 3%, after saying its controlling shareholder might buy out the newspaper publisher if two other deals — the sale of its insurance-risk division, and the acquisition of 20% held car retailer Cazoo Holdings — are completed.

Tate & Lyle

shares rose 2%, after agreeing a deal to sell 50% of its sweetener-making primary products division in North America and Latin America to KPS Capital Partners for $1.3 billion.

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