European airlines are now at the receiving end as the coronavirus outbreak continues to spread across more regions. The arrival of coronavirus in Italy triggered a collapse in global stock markets which was far worse than what analysts were expecting. Italy now joins Iran and South Korea in the list of countries apart from China failing to keep a check on the spread of coronavirus. EasyJet and RyanAir were the two airlines who registered the largest slumps, 16.4 percent and 13.5 percent respectively, as a reassessment of the fallout has become imminent for the airline companies.
No airlines have cancelled any flights to or from Italy as yet, but with the summer season knocking the tourism is expected to hit the airlines hard as customers are now more or less afraid to travel to these locations. Italy is one of Europe’s topmost tourist spot and the outbreak in the country only makes things worse for the European markets which suffered their biggest slump since in almost four years. Airlines had already predicted high-scale losses due to the effect of coronavirus, but those estimates are now expected to go higher as major the virus spreads across more countries. The International Air Transport Association (IATA) has stated the virus could ultimately wipe out USD 28 billion from the airline industry.
China has been struggling hard to cope up with the effects of coronavirus on its economy and has already implemented major rate-cuts and released liquidities to stabilise the market. Leading electronics and auto manufacturers including the likes of Tesla and Foxconn have started manufacturing plants after remaining shut for weeks after the outbreak. Apple too has resumed operations in its stores in China after reporting severe losses in the month of January in its business in China.