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.

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.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

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

liveprices.javascriptrequired

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

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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.