MILAN, July 31 (Reuters) – European travel stocks stumbled into some profit-taking as earnings season kicked off and extreme weather hit in July, but many investors are betting relatively attractive valuations and solid demand will keep supporting the sector.
An index of European travel and leisure stocks (.SXTP) has risen 33% over the last year, beating even market favourites like luxury (.STXLUXP) and defence (.SXPARO) and racing over 23 percentage points ahead of the broader market (.STOXX).
The index has fallen slightly from its May peaks, but is still one of the best performers this year, thanks to sharper price increases in items like airline tickets and hotel rates as COVID-19 curbs were phased out ahead of the summer holidays.
Investors still see blue sky ahead for Europe travel stocks as boom abates
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