Not many industries have experienced such a severe impact of the coronavirus pandemic like the airline industry. While the global travel restrictions and the lockdown rules are expected to cause airline passenger revenues to drop by $300bn in 2020, the world's largest airline companies are witnessing staggering losses in their market capitalization.
According to data gathered by
Market Cap Halved Amid COVID-19 Outbreak
In January, the combined market cap of the
After the Black Monday crash, this figure plunged to $25.3bn in the third week of March, a 67% fall since the beginning of the year. The downsizing trend continued in the next two months, with the combined market cap falling to $25bn at the end of May.
This figure increased by nearly $12bn in the last two months, reaching $36.9bn in the third week of July. Nevertheless, the value represents a 52% plunge compared to January figures.
Statistics show the market cap of Delta Air Lines, as the world's largest airline by revenue, stumbled by 54% amid COVID-19 crisis, falling from $35.5bn in January to $16.5bn in the third week of July.
The combined value of shares of American Airlines, the second-largest airline by revenue, and the leading airline by flown passenger kilometers stood at $4.8bn last week, a 58% fall since the beginning of the year.
United Airlines have witnessed a 57% drop in market capitalization in the last seven months, with the value plunging from $19.3bn in January to $8.2bn last week. The YCharts and MarketTrends data indicate the three largest airlines in the United States lost a total of $36.7bn in combined market capitalization amid coronavirus outbreak.
Two Largest European Airlines Lost $4.1bn in Market Capitalization
The world's third-largest airline by revenue, Lufthansa Group, has also witnessed a substantial fall in the total value of shares in the last seven months. In January, the market cap of Europe's largest airline stood at $7.42bn. After the Black Monday Crash, the total value of the company's shares stumbled to $4.49bn, a 40% drop in three months. Statistics show that Lufthansa market capitalization amounted to $5.51 at the end of last week, a 25% drop since the beginning of the year.
Air France, as the world's fifth-largest airline by revenue, lost $2.2bn in market cap amid the COVID-19 crisis. In January, the total value of the company's shares stood at $4.2 bn. By the end of the last week, this figure fell to under $2bn. Statistics show the two largest European airlines on this list lost $4.1bn in combined market capitalization since the beginning of the year.
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