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Let's take a look at some stocks on the move today in Europe. I'm Rachel Evans with Stephen Carroll and we're joined by Bloombergs twa at a bio Teawear. Thanks joining us abideus. Let's start there that they're up this morning. What is going on?
Yeah, so that's the IT group. It processes transactions for the global travel and tourism industry, so for airlines, hotels, cruise lines, similar They're up as much as five point seven percent today, so that's a sizeable jump. One of the biggest winners on the stock six hundred as well, and it's after they've announced results which beat expectations in the first quarter and also crucially they reiterated their guidance. And that's despite the disruption that we're seeing caused by
the Middle East conflicts. I think that's interesting because there is expected to be at least some disruption to travel this summer as a result of the closure of the Strait of Hormuz and the ongoing tension in the Middle East, but Amadaeus is expecting to be unperturbed by those headwinds, so analysts are really calling that out, describing the company
as resilient in the midst of these difficulties. But it is worth noting as well that Jeffries has said in their assessment that travel trends will progressively improve from here, so they're using that as a basis to predict that Amadeus's results will only get better from here on out. So perhaps some hope for those counting on summer holiday plans after all.
Yeah, indeed, well that's an interesting read from their results. Not quite the same picture they're coming from. IAG, the parent company of British Airways Iberian erlingis no well so.
Now that travel related stock, but definitely moving in the opposite direction. This morning, their shares are down as much as five point nine percent, and that is the most in two months. And this drop has really been brought about by a warning from the group that their profits will be lower than previously anticipated, and that is all because of these increased fuel costs that we're seeing as a result of the conflict in the Middle East. Just
to give you an idea of scale. They're forecasting that they'll pay about two billion euros more for fuel in twenty twenty six and that's going to lead to a total bill of about nine billion euros, So a big difference there. But this is something that we're seeing across the board this earning season in the airline space. The higher fuel costs of really curbing profit and forcing carriers
to find ways to rain in costs. Some airlines canceling flights, others are decommissioning older aircraft that perhaps use more fuel to.
Deal with that pressure.
And of course there is not yet a resolution on that question of the strait of Hormus, so these problems could be likely to persist for the time being.
Yes, indeed, finally we've got Ryan Metal also moving.
Yeah, Rye Mittel falling this morning, one of the biggest followers on the stock, six hundred down as much six percent. It's coming off the back of a downgrade from JP Morgan. They've actually slashed their price target by almost thirty percent there, and the reason they're giving for this is that Ryan Mattal is starting to miss its own targets according to analys should note that they have admitted that those targets were already quite ambitious, but they're highlighting for missus versus
consensus in the past six months. Some other investors also questioning whether Ryan Metal has the right product portfolio, but there are some bright sports, at least for JP Morgan. They are still positive on the outlook for German defense spending overall, and that's of course coming amidst this rising pressure that we're seeing across Europe to spend more on defense.
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