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.

You can go long or short airline stocks with IG using derivatives like CFDs.

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.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get commission from just 0.08% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.