Airline stocks fall from coronavirus

But they will soar again, and investors will want to get aboard for continued growth beyond the current short-term tailwinds

Vikram Barhat 25 March, 2020 | 1:09AM

Airplane wing

Editor's note: Read the latest on how the coronavirus is rattling the markets and what you can do to navigate it.

The coronavirus outbreak, travel bans and spooked travellers abandoning their travel plans are wreaking havoc on the airline industry. The SARS epidemic in 2003 cost global airlines a whopping US$7 billion, but financial hit from the COVD-19 outbreak will certainly surpass that of SARS, according to Morningstar equity analyst, Ivan Su. According to the world airline association The International Air Transport Association (IATA), the coronavirus outbreak could cost airlines as much as US$30 billion in revenue.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
American Airlines Group Inc12.99 USD14.65
Southwest Airlines Co36.82 USD7.35
United Airlines Holdings Inc32.40 USD17.78

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.