Listed travel and leisure companies are issuing profit warnings at an unprecedented rate, according to latest analysis from EY.
The sharp uptick has been triggered by coronavirus pandemic.
Thirty-nine FTSE travel and leisure profit warnings issued so far in 2020 have specifically blamed the impact of Covid-19 for a material downgrade to their profit expectations, reported EY, which has been tracking UK profit warnings for over twenty years.
This is almost five times the number (eight) of FTSE travel and leisure warnings issued in the first quarter of 2020.
Profit warnings citing the impact of Covid-19 have been issued by 57 per cent of FTSE travel and leisure companies so far this year.
One in six of the total number of Covid-19 related profit warnings issued in the UK in 2020 were from companies in the sector.
EY UK & Ireland head of hospitality and leisure, Christian Mole, commented: “Covid-19 has profoundly affected businesses’ ability to plan and forecast, driving a significant rise in profit warnings, which are currently being issued at an exceptional rate.
“Indeed, almost all listed hotel groups have officially withdrawn guidance for 2020.
“While there is extensive information on recovery times from previous downturns, the…