Airline and hotel shares tumble as substation fire shuts airport, while UK borrowing jumped more than expected

• Travel chaos as Heathrow airport closes after blaze at electrical substation
• Borrowing overshoot will test Rachel Reeves’s resolve on tax rises

Borrowing overshoot will test Rachel Reeves’s resolve on tax rises

February’s public finances data, published on Friday, is only likely to make Rachel Reeves more convinced that she needs to take action at next Wednesday’s spring statement.

The fire in Heathrow is having a big effect on the airline sector in Europe and elsewhere.

IAG, the owner of BA and Iberia, is down more than 3%, while KLM-Air France is also lower by 1.5% so far.

The disruption caused by the Heathrow closure for the entire day on Friday is huge, but it will be temporary, and we expect airline stocks to stabilise after an initial knee jerk sell off.

The airline sector is fragile now, due to concerns about a US recession and a weak global consumer.