MARKET REPORT: Airlines face £63bn blow as travel ban takes its toll

MARKET REPORT: Airlines face £63bn blow as travel ban takes its tollMARKET REPORT: Airlines face £63bn blow as travel ban takes its toll

Despite desperate pleas from the industry, the Government still has yet to offer airlines a tailormade bailout deal. Companies' calls for a safety net will likely become louder after the International Air Transport Association (IATA), the global industry body, released its latest set of alarming numbers. It now reckons European airlines could lose £63billion in passenger revenues over the course of 2020 as demand is projected to be almost half what it was last year. For the UK, this boils down to 113.5m fewer passengers expected to travel this year, potentially knocking out £18billion worth of revenues, putting 402,000 jobs at risk and depriving the economy of around £27billion. The share prices of British Airways-owner IAG and budget carriers Easyjet, Ryanair and Wizz Air, have all roughly halved in value since the market began to dive in late February. The Government has so far insisted taxpayer support would only be an option if all commercial avenues have been fully explored – which could mean tapping investors for more cash. But shareholders were still feeling positive about airline stocks yesterday. IAG rose 0.6 per cent, or 1.4p, to 231.5p last night, while Easyjet inched 0.3 per cent higher, or 1.6p, to 652.4p, Wizz Air climbed 9.1 per cent, or 203p, to 2423p and Ryanair rose 0.4 per cent, or 4 cents, to €9.70. The FTSE 100 kept climbing after recording its strongest twoday surge ever earlier this week. The blue-chip index rose 2.2 per cent ...
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