The biggest impact has coronavirus on the airlines stocks. Today, British Airways said, after many airlines, that coronavirus would hit its earnings this year but it wasn’t sure by how much, becoming the latest airline to warn about the impact of the rapidly evolving outbreak.
According CEO’s words virus rapidly changing situation and he also said: “I wouldn’t call it unprecedented. We have seen other challenges for the industry.”
British Airways has in recent days cancelled flights to and from Italy, Singapore and South Korea, after it suspended all direct flights to China in January. IAG said further cancellations would follow in the coming days.
British budget airline easyJet also warned on Friday that it had seen “significant” softening of demand for travel to Italy and other European markets and would cancel flights and cut costs. Finland’s Finnair also warned of a significant fall in profit.
Share prices were on track for their worst week since the global financial crisis in 2008 and IAG’s is down 25% since the middle of January. On Friday it fell a further 8%.
Analysts are confident, that that a downturn would reveal the strength of the IAG model.