Published on : Tuesday, January 31, 2017
The latest travel ban, implemented by the US President Donald Trump, on immigrants and travellers from seven Muslim nations created a state of chaos in the country in just a few days. The shares of the airline companies of the United States recently took a hard jab and plunged to the lowest spot in eight weeks on Monday, 30th January.
Most of the shares of the airlines were sold off on Friday, 27th January after the order was signed by the President. According to the industry experts, the NYSE Arca Airline Index fell down 1.7 per cent and reached the lowest spot in almost eight weeks. The American Airline took most of the blow on Friday as AAL slumped 4.37 per cent.
After the signing of the order, the stock of American Airlines witnessed the biggest decline of 4.4 per cent in the industry. Apart from American, the shares of the United Continental Holdings Inc. took a plunge of 3.63%. The shares of the Delta Air Lines Inc. also witnessed a slump of 4.1 per cent after computer outage forced numerous flights to cancel or delay. Apart from these, the shares of JetBlue Airways Corp. took a plunge of 1.5 per cent, shares of Southwest Airlines Co. slumped 0.7 per cent and the Alaska Air Group Inc.’s share witnessed a plunge of 1 per cent.
According to Michael Derchin of Imperial Capital LLC, the plunges of the shares are more of a short-term issue than a long-term one, which should normalise soon.