Global airline stocks take a massive hit amidst rising cases of Coronavirus outside China

With the rising cases of Coronavirus outside China, even the reduced prices of fuel are failing to stir optimism in the travel and tourism across the globe. Amidst such complications, airline stocks saw a significant drop on Monday.

At $25.45 per share in the stock market, American Airlines declined 8.5% on Monday to post a new low in over four months. A 6.3% drop in Delta Air Lines brought it down to $54.23 level that was last seen around four months ago. United Airlines was 3.3% down on Monday while a 4.3% decline was recorded in Southwest Airlines. Compared to the airline stocks, the benchmark S&P 500 index lost 3.4% on Monday.

Coronavirus Has So Far Infected 80,000 People Worldwide And Caused 2,621 Deaths

The total number of COVID-19 (Coronavirus) cases have approached 80,000 with at least 2,621 deaths reported worldwide. Outside of China, the WHO (World Health Organization) sees the rising cases in Italy and South Korea as the most concerning with 220 and 830 cases reported respectively.  

European airlines have been weighed in the financial markets as well. The Department of Foreign Affairs and Trade in Ireland recently restricted its citizens from traveling to the affected countries in an attempt to contain the global spread of the virus. In the European airlines, EasyJet took the lead with a 16.7% decline in its stock while 13.5% and 8.8% was noted in Ryanair and Deutsche Lufthansa respectively. International Consolidated Airlines Group also lost 9% in the stock market on Monday while an 8.7% decline was reported in Air Frace – KLM.

Cirium Says 200,000 Flights Have So Far Been Canceled To, From, And Within China

Cirium, an aviation consulting firm, recently reported as many as 200,000 flights that have been canceled not only to and from China but also within it. The firm further stated that disruptions are likely to extend further if the health emergency persists and expands in the upcoming months.

The International Air Transport Association recently announced a massive $29 billion revenue hit expected to airlines this year ascribed to the virus crisis. Global demand for air travel, it further remarked, is likely to see a significant decline for the first time in over a decade.

All of the U.S based carriers have also announced a temporary suspension of flights to Hong Kong and mainland China. The rapid spread of the virus in Iran, South Korea, and Italy is threatening COVID-19 to take on the form of a pandemic. The second and third quarters of the year are known to be the busiest period of the year for airlines. Whether or not they’ll be able to recover their losses in this period is yet to be seen.