Airline investors spooked by Ebola: International Air Transport Association report
EBOLA has spooked airline industry investors, with share prices tumbling as the virus changes from an isolated catastrophe to a potential worldwide threat.
THE spread of the Ebola virus has sent jitters through the airline industry with carriers’ global share prices falling four per cent last month.
The International Air Transport Association reported the downturn in its latest financial monitor, blaming “investor concerns over the spread of Ebola”.
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“Carriers in all regions experienced a fall in share values but airlines in North America and Asia experienced the most decline,” said the report.
“Despite weakness this month, world airline share prices are up 11 per cent so far this year.”
The IATA report coincided with the news of the first European case of Ebola.
A 44-year-old Spanish nurse contracted the deadly virus while treating a missionary priest in Madrid after he was evacuated from Sierra Leone.
The nurse was now in a “stable condition” in hospital, Spain’s health ministry said.
The case is likely to cause further concerns about the virus that has already infected 7500 people in West Africa and claimed about 3400 lives.
Yesterday US President Barack Obama said passenger screenings in the United States and Africa would be augmented to detect the Ebola virus.
But he resisted calls for a ban on those travelling from the countries most affected by the outbreak — Liberia, Sierra Leone and Guinea.
A spokeswoman for Australia’s Federal Department of Health said no changes would be made to border screening here.
“Australia already has measures in place at the border and in designated hospitals in all states and territories,” she said.
“In addition all state and territory health departments have provided specific guidance to their designated hospitals, paramedic and ambulance workforces, general practice and state-based quarantine and medical staff in relation to how to isolate, test and treat a suspected Ebola case.”
IG Markets analyst Evan Lucas said the investor jitters impacting the airline industry were likely to be short-lived.
“Investors are often the first to react (in these situations) but we haven’t had an issue here,” said Mr Lucas.
“Part of the problem (for US carriers) is people like Donald Trump saying incredibly stupid things like ‘ban flights from West Africa’.”
A series of tweets made by the billionaire businessman went viral on the weekend following confirmation a US cameraman was diagnosed with Ebola after returning home from filming in West Africa.
President Obama - close down the flights from Ebola infected areas right now, before it is too late! What the hell is wrong with you?
— Donald J. Trump (@realDonaldTrump) October 5, 2014If Ebola is so non-contagious, how come an NBC cameraman caught it so quickly while over in West Africa? U.S. is behaving very foolishly!
— Donald J. Trump (@realDonaldTrump) October 4, 2014Despite being classified as highly infectious the virus is transmitted through bodily fluids and is not airborne.
Mr Lucas said shares should recover relatively quickly.
“When SARS was starting up there was a bit of an issue around that too and a slight downward movement in shares,” he said.
“In Australia it hasn’t really hit us.”
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