Shares in Delta and United, the airlines most affected by President Donald Trump’s EU travel ban, slumped by more than 20 per cent on Thursday.
Huge falls were also seen by major international carriers such as American (17 per cent), Lufthansa (14 per cent), British Airways (16 per cent), Air France (13 per cent) and Ryanair (5 per cent).
The fall came as the US banned travel from European countries in the so-called Schengen Area that have abolished passport and border controls.
The International Air Transport Association (IATA) has estimated that 200,000 flights carried passengers into the affected areas last year, averaging at about 550 flights carrying 125,000 travellers per day.
Over the next four weeks, the duration of the ban, 6,700 flights in each direction would be affected, according to an analysis by aviation data provider OAG.
Delta is the most affected, operating 17 per cent of those flights; United next, with 14 per cent; and Lufthansa third, with 13 per cent.
Yesterday, Delta shares closed at $33.71 (down 21 per cent) and United at $37.08 (down 25 per cent).
Delta responded by saying that, once the ban takes effect, it would suspend flights between Paris and Cincinnati, Indianapolis, Raleigh-Durham and Salt Lake City.
Meanwhile, United said it would continue to fly its existing schedule between the US and Europe through to 20 March.
Reacting to the decision by the President, IATA chief executive Alexandre de Juniac said, “Suspending travel on such a broad scale will create negative consequences across the economy. Governments must recognise this and be ready to support the industry.”
Update to our schedule to Europe. https://t.co/2qcca0ohW1 pic.twitter.com/B9aTkBf841
— United Airlines (@united) March 13, 2020
However, Sara Nelson, president of the Association of Flight Attendants, the union representing flight attendants at 20 airlines, including United, said the industry was “blindsided” by the announcement.
Nelson said, “It created total pandemonium. Airline employees had no idea what this meant and for some it was completely disrupting their lives. They weren’t even sure if they were going to have a job in the next 24 hours or get home.
“The trajectory that this is on right now is beyond job loss, it’s about whether or not the industry can actually operate. You can’t operate a flight when no one wants to be on it.”
The ban covers the following countries: Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and Switzerland.
