Airline stocks nosedive as US travel ban hits EU travel sector

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PARIS - Europe's travel sector reacted with dismay Thursday to a US-imposed trans-Atlantic travel ban that sent the share price of major airlines into free fall.

PARIS - Europe's travel sector reacted with dismay Thursday to a US-imposed trans-Atlantic travel ban that sent the share price of major airlines into free fall.

Trump said the US would not allow travelers from the EU's Schengen border-free zone into the country for 30 days, calling the move an "aggressive" effort to contain the spread of COVID-19, the disease caused by the new coronavirus. Boeing, already reeling from problems with the 737 MAX jet, lost 14 percent by the time trading was suspended Thursday, which added to its 18 percent drop a day earlier.

Peter Elbers, chief executive of the Dutch carrier KLM, told public television NOS: "It is undeniable that the consequences are extremely heavy." Le Maire "regretted" a decision "which will have a very strong impact on tourism and a very strong impact on companies in general."European leaders argue that travel restrictions are ineffective because the virus has now spread almost worldwide, and lament that Trump had not consulted them first.

The ban "will create enormous cash-flow pressures for airlines," IATA head Alexandre de Juniac said. "Airlines will need emergency measures to get through this crisis."

 

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