easyJet and IAG share prices fall further as Covid-19 weighs on industry
Airline carriers have seen shares nosedive after requesting emergency government aid as Covid-19 lockdowns and travel restrictions take their toll on the industry.
Airlines have seen shares fall further after calling for emergency government aid amid lockdowns and new travel restrictions brought on by the coronavirus outbreak.
British Airways-owner IAG, easyJet and other airline carriers have seen shares tumble after being forced to cancel almost all their flights over the coming weeks, as the coronavirus outbreak worsens.
On Tuesday, IAG shares fell 5% to 241p and easyJet is down 7% to £5.90, with the pair down 60% since the start of January.
‘Demand is drying up in ways that are completely unprecedented,’ according to a recent report by aviation consultant CAPA.
In the report, the consultancy forecast that many global airlines are at risk going bust as early as June unless government aid is provided.
‘Normality is not yet on the horizon,’ the report said.
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Airline alliances request ‘extraordinary support’
In a joint statement by Oneworld, Skyteam and Star Alliance, the three airline alliances called on governments and regulators to act to mitigate the impact of the Covid-19 outbreak on the airline industry.
‘To alleviate the immense pressures faced by airlines in the current operating environment, and in support of IATA’s statement on 12 March, the three alliances urge governments worldwide to prepare for the broad economic effects from actions taken by states to contain the spread of Covid-19, and to evaluate all possible means to assist the airline industry during this unprecedented period,’ the joint statement said.
‘The alliances also call on other stakeholders to provide support. For example, airport operators are urged to evaluate landing charges and fees to mitigate the financial pressure faced by airlines due to a severe decline in passenger demand.’
The airline industry was dealt yet another blow after Spain declared a state of emergency, following in the footsteps of the US, with President Donald Trump extending his travel ban to include the UK and Ireland.
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