Spicejet went down almost 16.5% to hit a new 52-week low today at Rs.58.10; it has recovered from the low but remains firmly in the red at Rs.62 levels. The other listed airline stock, Indigo or Interglobe Aviation also tanked big time to hit a new low at Rs.1115, going down 8%.
The coronavirus has most certainly impacted the aviation stock with people cutting down on travel, within and outside the country. As the fear and spread of the virus increases, more and more people will stop travelling and this is most certainly going to hit the sector pretty bad.
The International Air Travel Association (IATA) has estimated that the financial impact of the coronavirus on the passenger business of airlines would be somewhere between $63 billion and $113 billion. Earlier, when the virus was still confined to China, IATA’s revenue impact estimate was significantly lower, at $29.3 billion.
IATA said that financially, this would be on a scale equivalent to what the industry experienced during the global financial crisis.