The UK inventory market has made a robust comeback prior to now month, with the FTSE 100 climbing 870 factors since 7 April. Consequently, many UK shares I’ve been eyeing up are on the rise!

I’ve been paying specific consideration to shares that would see a lift throughout summer time. Assume price range airways and hospitality firms that usher in income from southern Europe.

Taking to the skies

I already personal shares in easyJet however I’ve been eyeing up competitor Worldwide Consolidated Airways (LSE: IAG) for a while. With places of work registered in Madrid, the group operates main airways that serve the south of Spain, like British Airways, Iberia, and Vueling.

Throughout 2024, it introduced in £3.56bn in working revenue, up 18.66% from the earlier yr. Most promisingly, its price-to-earnings (P/E) ratio stays low at solely 6.46, suggesting way more room for progress. Including to this, it reintroduced dividends final yr at 9c per share, making for a yield of two.7%. It additionally introduced a €1bn share buyback programme to assist dividends over the subsequent 12 months.

Whereas issues are bettering financially for the airline, it nonetheless has round £14.3bn in debt hanging over from Covid. That’s a pretty big quantity for an organization with solely £6.79bn in money and equivalents. One other recession or pandemic-like occasion might ship it into severe monetary bother. Promisingly, its fairness has elevated by over £5bn prior to now three years.

Gas is one other key issue to look at — as the corporate’s largest working expense, any provide disruptions or price will increase might harm its margins. The corporate hedges gasoline to mitigate this danger nevertheless it’s solely a partial resolution.

Total, IAG appears to me to be on a strong route in the direction of restoration. Barring the unlikely occasion of one other pandemic-like recession, I believe it has nice prospects and is price contemplating this summer time.

Native brief stays

With Brexit placing a dampener on EU journey, many Brits are trying nearer to residence for his or her holidays. Premier Inn proprietor Whitbread (LSE: WTB) stands to learn from this development. The hotelier is the UK’s largest lodge chain, with a rising footprint in Germany.

Its reasonably priced pricing and widespread places assist resilient demand, making it the provider of selection for home holidaymakers.

Nevertheless, it does face some challenges. Rising wages and better nationwide insurance coverage contributions are straining its margins. Plus, there’s a possible oversupply of choices within the lodge market on account of Airbnb and comparable outfits, giving customers a glut of low-cost choices. With the financial system nonetheless in restoration mode, restrictive spending patterns might harm its income.

Newest outcomes highlighted £2.92bn in income and earnings of £312.1m, leading to a reasonable web revenue margin of 10.5%. Its P/E ratio is barely above common at 19.5, which might restrict progress. Nevertheless, its potential for returns is boosted by a good 3.54% dividend yield. It reintroduced dividends in 2022 after a Covid-era reduce and quickly elevated them from 34.7p per share to 97p.

Whitbread’s financials aren’t as interesting to me as IAG’s however I just like the velocity at which it reintroduced dividends. That’s a promising signal of its operational effectivity and dedication to shareholders, which makes it a inventory price contemplating in my books.