Airlines shares react on US travel ban

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Shares of European airlines plummeted Thursday and hit their lowest level since August 2013. The US ban on Europeans further exerted pressure on the already severely affected aviation sector and frightened investors. On the Damrak, the aviation combination Air France-KLM plummeted more than 14 percent. The entry ban for European countries has dramatic consequences for the world of travel. The European stock exchanges also turned dark red.

In the morning trade, the AEX index on Beursplein 5 recorded over 7 percent in the minus at 449.61 points. All 25 AEX companies went down. Insurer Aegon (at least 8.6 percent) was the largest faller. The MidKap fell 8 percent to 656.80 points. Paris, London and Frankfurt lost up to 6.7 percent. The stock market in Milan fell 5.1 percent.

US President Donald Trump announced that he would suspend all air traffic from Europe to the United States from Friday midnight (local time) for a period of thirty days. With the measure, Trump wants to prevent the further spread of the new coronavirus in the US. Air France-KLM said it was studying the impact of the travel ban. The ailing Norwegian Air saw 17 percent of its stock market value evaporate in Oslo. The budget airlines easyJet and Ryanair lost around 7 percent. Lufthansa and IAG fell more than 9 percent.

In addition, the interest rate decision of the European Central Bank (ECB), which will be announced later today, was also looked forward to. ECB President Christine Lagarde is expected to come up with support measures to mitigate the negative economic impact of the new corona virus.

Eurocommercial Properties lost 7.5 percent. The property operator is postponing a number of tenants in Italian shopping centers from rent payments due to the impact of the corona virus. Animal feed company ForFarmers fell 5.4 percent after a sharp drop in profit in 2019.

The euro was worth $ 1.1266 against $ 1.1410 a day earlier. A barrel of American oil fell 4.1 percent in price to $ 31.62. Brent oil was 4.1 percent cheaper at $ 34.32 a barrel.

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