Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

IAG and other European airlines see share prices tumble after Trump travel ban

British Airways-owner IAG and its European peers have all seen their shares take a major tumble on Thursday in reaction to US President Donald Trump’s decision to ban all travel from Europe to fight the COVID-19 outbreak.

US President Donald Trump Source: Bloomberg

British Airways-owner IAG saw shares fall 11% in early morning trading on Thursday, following the announcement by US President Donald Trump to ban all travel from Europe into the US to fight the coronavirus outbreak.

‘The European Union failed to take the same precautions [as America] and restrict travel from China,’ Trump said on Wednesday evening in a televised address. ‘As a result, a large number of clusters in the United States were seeded by travellers from Europe.’

‘We will be suspending all travel to Europe from U.S. for the next 30 days,’ he added. ‘The ban doesn’t apply to flights from the United Kingdom.’

IAG is trading at 366p a share as of 12:45 (GMT).

Looking to trade IAG and other airline stocks? Open a live or demo account with IG today.

European airline stocks tumble after Trump travel ban

News of Trump’s travel ban saw European airline stocks tumble on Thursday, with Germany’s Lufthansa down 6%, while Air France-KLM and Norwegian Air both fell by as much as 17% and 33% respectively.

However, it wasn’t just European airlines that were hurt by the travel ban, US airlines like Delta, and United Airlines, which both boast the largest share of transatlantic flights are both down 15% in pre-market trading.

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

Collapse of Flybe could be first of many

The coronavirus has hit the airline industry hard, with travel bans, flight cancellations and weakening demand proving too much for Europe’s largest regional airline Flybe, which fell into administration earlier this month.

The collapse of FlyBe makes it the second major British airline to go bust in six months, with Thomas Cook going bankrupt in September last year.

The airline industry will be hoping that the coronavirus will be eradicated soon, but with the UK seeing its biggest daily raise in cases on Wednesday to 460, things look likely to get a lot worse before they get better.

If that is the case, prolonged pressure on European airlines could see others fall on hard times.


The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.

React to global volatility

Market volatility continues as coronavirus dominates the global agenda. Trade with us to take advantage of:

  • Tight spreads – from just 1 point on major indices, and 2.8 on US crude
  • Guaranteed stops – they’re free to use, and you’ll only pay a small fee if they’re triggered
  • Round-the-clock assistance – our highly skilled teams are available when you need support

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

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.