Airline stocks dropped following a 30-day travel ban enforced by President Donald Trump, raising the risk that carriers with coronaviral consequences could run out of cash in the coming weeks, leading to major redundancies.
Norwegian Air, a heavily-debted budget airline, said it suspended over 4,000 flights and laid off up to half of its staff for a temporary duration after 22 percent drop stock on Thursday.
"Further pressure on the already challenging situation has been put by the new restrictions," CEO Jacob Schram said in a statement. "We call on international governments to take steps now to ensure that the aviation sector can protect jobs and remain a key element in the global recovery."
Airline companies worldwide were forced to cancel large numbers of flights by adjusting their procedures drastically as coronavirus wiped out travel requests. Hundreds of billion dollars were already being lost in the industry.
Airlines will need' emergency steps to resolve the crisis' as the International Air Transport Association (IATA) advises governments to consider expanding credit lines, lowering infrastructure costs, and loosening taxes.
Roger Dow, CEO of Washington DC-based US Travel Association, said the government would take "equally aggressive" steps to secure the American workforce.
The already major impact of coronavirus on the travel industry and the 15.7 million people whose income depends on the traveling industry is being worsened by the temporary shut-off of Europe, said Dow in a statement.
Travel, tourism, and hospitality are more heavily impacted by the coronavirus outbreak, as businesses ban business travel and conferences and activities are canceled.