Today I’ll be taking a closer look at three FTSE 100 travel companies whose share price collapsed in the aftermath of the UK’s decision to leave the European Union. Should savvy investors take advantage of the recent share price weakness and scoop up these out-of-favour travel stocks before they bounce back?

Too cheap to ignore

International Consolidated Airlines Group (LSE: IAG) was one of the big casualties of the post-Brexit panic, losing a massive 23% of its value on the day following the historic vote. The group, which owns British Airways, Iberia and Aer Lingus, issued a statement the same day saying it didn’t expect the result of the referendum to have any material impact on the business in the long term, and said it continued to expect a significant increase in operating profits in 2016, albeit of a lesser magnitude than in 2015.

In July the group announced positive interim results with operating profit up almost 28% to €710m, compared to €555m reported for the first half of 2015. Within days it was revealed that Qatar Airways had increased its stake in IAG to 20% to take advantage of the attractive valuation and reiterated its confidence in the group’s strategy and management team. I’m with Qatar and agree that the shares are simply too cheap to ignore at just five times forecast earnings for the full year, supported by a solid dividend yield approaching 5%.

Exceptional events

Another airline yet to recover from the Brexit fallout is low-cost carrier EasyJet (LSE: EZJ), with its shares still trading 25% lower than on referendum day despite recent takeover rumours. The company’s third quarter update was somewhat disappointing with a fall in both total revenue and revenue per seat. But passenger numbers rose 5.8% to 20.2m, boosted by a 5.5% increase in capacity to 21.9m seats, and the load factor increasing to 92%.

Personally, I think the Luton-based airline has been a little unlucky with exceptional events such as the Brussels attacks, bad weather and air traffic control strikes leading to a higher-than-usual number of cancellations and affecting third quarter results. The shares offer good value with a forward price-to-earnings ratio falling to just 10 for the year to September 2017, and a healthy 5% prospective dividend yield. The current share price weakness presents itself as a buying opportunity for investors seeking a long-term recovery play with a good level of dividend income.

First choice?

Unlike IAG and EasyJet, the world’s largest tourism group TUI Travel (LSE: TUI) has enjoyed a two-month rally that has seen its shares gain 24% and more importantly regain all the ground lost in the wake of the EU referendum. Shares in the group, which owns a whole host of travel brands including First Choice Holidays and Thomson, look attractive at just 11 times earnings for the year to September 2017, and support a generous dividend yield of 5%. TUI travel remains a good choice for investors seeking a blend of solid income and long-term growth potential.

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Bilaal Mohamed has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.