Airline stocks nosedive as US travel ban hits EU travel sector

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[PARIS] Europe's travel sector reacted with dismay on Thursday to a US-imposed trans-Atlantic travel ban that sent the share price of major airlines into free fall. Read more at The Business Times.

"Trump is simply kicking a man when he's down," according to an EU diplomat in Brussels who called the ban"erratic."

Key US companies were hit even harder than their European counterparts, with the sector suffering its worst downturn since the September 11, 2001 attacks. Global markets have lost a combined US$11.3 trillion in value since a peak on February 19, and US$4.5 trillion this week alone."The travel ban is another hammer blow for the airlines" that"were getting crucified by the reduction in tourism and business travel in the last month," said economist Charlie Robertson at Renaissance Capital in London.

French Finance Minister Bruno Le Maire told a news conference:"Trump's announcement is bad news for all airlines." Service sector businesses have been pummelled and industrial supply lines are also under pressure, further dampening economic activity.

 

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