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‘Massive Shock’ and Battered Airline Stocks in Europe With Trump’s Travel Ban ‘Massive Shock’ and Battered Airline Stocks in Europe With Trump’s Travel Ban
(8 days later)
PARIS — President Trump’s abrupt decision to shut America’s borders to most European travelers sowed chaos at the Continent’s airports and at travel-related businesses Thursday, as airlines scrambled to figure out how to halt flights to the United States and governments warned of potentially devastating financial costs.PARIS — President Trump’s abrupt decision to shut America’s borders to most European travelers sowed chaos at the Continent’s airports and at travel-related businesses Thursday, as airlines scrambled to figure out how to halt flights to the United States and governments warned of potentially devastating financial costs.
The French finance minister, Bruno Le Maire, spoke of a “massive shock,” and European officials reacted angrily after Mr. Trump late Wednesday announced that he would suspend travel from Europe to the United States for 30 days starting Friday, with the exception of Britain. The State Department warned Americans that they should reconsider all international travel, the most severe caution it can offer short of “do not travel.”The French finance minister, Bruno Le Maire, spoke of a “massive shock,” and European officials reacted angrily after Mr. Trump late Wednesday announced that he would suspend travel from Europe to the United States for 30 days starting Friday, with the exception of Britain. The State Department warned Americans that they should reconsider all international travel, the most severe caution it can offer short of “do not travel.”
“The European Union disapproves of the fact that the U.S. decision to impose a travel ban was taken unilaterally and without consultation,” the European Commission said.“The European Union disapproves of the fact that the U.S. decision to impose a travel ban was taken unilaterally and without consultation,” the European Commission said.
The move hammered shares of European airline and travel companies as the sector braced for a nearly unprecedented brake on activity. Stocks for Air France, Lufthansa and IAG, the owner of British Airways and Iberia, fell as much as 13 percent. In early trading in the United States, American Airlines fell about 14 percent, and Delta Air Lines fell about 12 percent.The move hammered shares of European airline and travel companies as the sector braced for a nearly unprecedented brake on activity. Stocks for Air France, Lufthansa and IAG, the owner of British Airways and Iberia, fell as much as 13 percent. In early trading in the United States, American Airlines fell about 14 percent, and Delta Air Lines fell about 12 percent.
The International Air Transport Association urged “emergency measures” for airlines, saying the ban on European nationals entering the United States would create enormous cash-flow pressures for carriers and “create negative consequences across the economy.”The International Air Transport Association urged “emergency measures” for airlines, saying the ban on European nationals entering the United States would create enormous cash-flow pressures for carriers and “create negative consequences across the economy.”
“Governments must recognize this and be ready to support,” Alexandre de Juniac, the association’s director general, said in a statement.“Governments must recognize this and be ready to support,” Alexandre de Juniac, the association’s director general, said in a statement.
At Charles de Gaulle airport in Paris, frantic passengers jammed the Delta Air Lines counter in the morning seeking return flights to the United States.At Charles de Gaulle airport in Paris, frantic passengers jammed the Delta Air Lines counter in the morning seeking return flights to the United States.
Salomé Carasco, an American studying in Paris, said her parents had called her at 2 a.m., soon after Mr. Trump’s announcement, asking her to return home. “I understand that they are trying to stop” the virus’s spread, she said, “but the reaction is intense.”Salomé Carasco, an American studying in Paris, said her parents had called her at 2 a.m., soon after Mr. Trump’s announcement, asking her to return home. “I understand that they are trying to stop” the virus’s spread, she said, “but the reaction is intense.”
Air France, which operates 121 flights weekly between the United States, said on Thursday that it would fly only a handful of routes from Friday until March 28 and was working on a plan to operate beyond that. The French government said it was ready to provide state aid — an extraordinary step normally forbidden under European Union rules.Air France, which operates 121 flights weekly between the United States, said on Thursday that it would fly only a handful of routes from Friday until March 28 and was working on a plan to operate beyond that. The French government said it was ready to provide state aid — an extraordinary step normally forbidden under European Union rules.
“The impact will multiply very rapidly in the hours and days to come,” said Roland Héguy, president of the Umih, the French trade association of hotels and restaurants. “Many countries will be hit,” he said, adding that 95 percent of hotels, cafes and restaurants in France were already suffering revenue declines of up to 40 percent because of the coronavirus.“The impact will multiply very rapidly in the hours and days to come,” said Roland Héguy, president of the Umih, the French trade association of hotels and restaurants. “Many countries will be hit,” he said, adding that 95 percent of hotels, cafes and restaurants in France were already suffering revenue declines of up to 40 percent because of the coronavirus.
Given how much economic damage has already been done in Europe from the epidemic, some economists said the travel ban, while shocking, would not meaningfully deepen the downturn — and might even help hasten a recovery.Given how much economic damage has already been done in Europe from the epidemic, some economists said the travel ban, while shocking, would not meaningfully deepen the downturn — and might even help hasten a recovery.
“Considering all the other restrictions on movement already in place in Europe, in and of itself the ban is not a huge economic event,” said Holger Schmieding, chief economist at Berenberg Bank. “You could even argue that it is a blessing in disguise if it has the effect of slowing the spread in the United States,” he said.“Considering all the other restrictions on movement already in place in Europe, in and of itself the ban is not a huge economic event,” said Holger Schmieding, chief economist at Berenberg Bank. “You could even argue that it is a blessing in disguise if it has the effect of slowing the spread in the United States,” he said.
Because the epidemic is a medical emergency, he added, the most important thing governments can do to to ensure economic recovery is to prevent the virus from spreading more widely, even if it inflicts financial pain on companies.Because the epidemic is a medical emergency, he added, the most important thing governments can do to to ensure economic recovery is to prevent the virus from spreading more widely, even if it inflicts financial pain on companies.
“At the moment, significant short-term economic costs should be incurred if it helps with the medical emergency,” he said. “If it slows the spread of the epidemic to give us enough time to cope, that would be very valuable.”“At the moment, significant short-term economic costs should be incurred if it helps with the medical emergency,” he said. “If it slows the spread of the epidemic to give us enough time to cope, that would be very valuable.”
Nonetheless, the abrupt travel ban threatened a further blow to tourism-dependent industries on both sides of the Atlantic, and added to the problems of world leaders trying to preserve jobs in the face of the relentless coronavirus outbreak.Nonetheless, the abrupt travel ban threatened a further blow to tourism-dependent industries on both sides of the Atlantic, and added to the problems of world leaders trying to preserve jobs in the face of the relentless coronavirus outbreak.
European airlines were already grappling with a mounting financial toll after curtailing flights from Europe and to Asia, and had started cutting trans-Atlantic routes as travelers increasingly chose to stay home. Still, the industry will take an immediate hit. The International Air Transport Association on Thursday indicated that its estimate of a $113 billion decline in airline revenue from the coronavirus crisis was likely to rise.European airlines were already grappling with a mounting financial toll after curtailing flights from Europe and to Asia, and had started cutting trans-Atlantic routes as travelers increasingly chose to stay home. Still, the industry will take an immediate hit. The International Air Transport Association on Thursday indicated that its estimate of a $113 billion decline in airline revenue from the coronavirus crisis was likely to rise.
The European Union, and countries including Italy, Germany and Britain, have pledged over 70 billion euros in aid this week alone to support health systems and prevent an economic domino effect as the coronavirus epidemic puts a chilling effect on businesses.The European Union, and countries including Italy, Germany and Britain, have pledged over 70 billion euros in aid this week alone to support health systems and prevent an economic domino effect as the coronavirus epidemic puts a chilling effect on businesses.
But efforts to support businesses didn’t stop questions from swirling about the possibility of layoffs. Norwegian Air said it would temporarily lay off half its staff and cancel 4,000 flights until the end of May as the travel restrictions to the United States put “extra pressure on an already difficult situation.”But efforts to support businesses didn’t stop questions from swirling about the possibility of layoffs. Norwegian Air said it would temporarily lay off half its staff and cancel 4,000 flights until the end of May as the travel restrictions to the United States put “extra pressure on an already difficult situation.”
Updated July 7, 2020
The coronavirus can stay aloft for hours in tiny droplets in stagnant air, infecting people as they inhale, mounting scientific evidence suggests. This risk is highest in crowded indoor spaces with poor ventilation, and may help explain super-spreading events reported in meatpacking plants, churches and restaurants. It’s unclear how often the virus is spread via these tiny droplets, or aerosols, compared with larger droplets that are expelled when a sick person coughs or sneezes, or transmitted through contact with contaminated surfaces, said Linsey Marr, an aerosol expert at Virginia Tech. Aerosols are released even when a person without symptoms exhales, talks or sings, according to Dr. Marr and more than 200 other experts, who have outlined the evidence in an open letter to the World Health Organization.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles.
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
In Rome, Ciampino Airport, a hub for low-cost airlines, announced Thursday that it would shutter entirely as of Friday because of the outbreak. Fiumicino Airport in Rome, which hosts international flights, is bracing for reduced activity, its operator said.In Rome, Ciampino Airport, a hub for low-cost airlines, announced Thursday that it would shutter entirely as of Friday because of the outbreak. Fiumicino Airport in Rome, which hosts international flights, is bracing for reduced activity, its operator said.
At the Paris airport, Nadia Hamnache, an employee at Safe Bag, a company that sells protective wrap for luggage, said there were already far fewer travelers, with up to 50 percent fewer people visiting shops in Terminal 2E, the hub for Air France and Delta flights. “We’re really afraid of a reduction or canceling of Air France flights, because that impacts us directly,” she said. “If the cancellation of flights continues, we’ll have a loss of revenue.”At the Paris airport, Nadia Hamnache, an employee at Safe Bag, a company that sells protective wrap for luggage, said there were already far fewer travelers, with up to 50 percent fewer people visiting shops in Terminal 2E, the hub for Air France and Delta flights. “We’re really afraid of a reduction or canceling of Air France flights, because that impacts us directly,” she said. “If the cancellation of flights continues, we’ll have a loss of revenue.”
Employees were worried that they might be told to stay home, she added. “If we’re still paid, that’s OK, but if they don’t pay us that’s going to be a huge problem,” she said.Employees were worried that they might be told to stay home, she added. “If we’re still paid, that’s OK, but if they don’t pay us that’s going to be a huge problem,” she said.
In Spain, which has about 400 flights a week with the United States, the main airline association called for immediate financial help from the government. “Airlines are now in survival mode, facing a fall in demand that is without precedent,” Javier Gándara, the president of the Asociación de Líneas Aéreas, said in a phone interview.In Spain, which has about 400 flights a week with the United States, the main airline association called for immediate financial help from the government. “Airlines are now in survival mode, facing a fall in demand that is without precedent,” Javier Gándara, the president of the Asociación de Líneas Aéreas, said in a phone interview.
European visitors to the United States, excluding those from Britain, totaled nearly 11 million in 2018, accounting for more than a quarter of all travelers. Travel and tourism between the United States and Europe, including areas not covered by the ban, is a business totaling roughly $130 billion annually, according to U.S. data.European visitors to the United States, excluding those from Britain, totaled nearly 11 million in 2018, accounting for more than a quarter of all travelers. Travel and tourism between the United States and Europe, including areas not covered by the ban, is a business totaling roughly $130 billion annually, according to U.S. data.
Travel agencies and tour operators also scrambled for solutions to withstand the impact.Travel agencies and tour operators also scrambled for solutions to withstand the impact.
“It’s absolutely catastrophic,” said Jean-Pierre Mas, president of Entreprises du Voyage, a union representing the main French tour operators.“It’s absolutely catastrophic,” said Jean-Pierre Mas, president of Entreprises du Voyage, a union representing the main French tour operators.
Mr. Mas said that the United States was the most popular non-European destination for French tourists and businesspeople. Every year about 1.8 million French citizens visit the United States, with a specific preference for March and April, when about 400,000 French fly to the United States.Mr. Mas said that the United States was the most popular non-European destination for French tourists and businesspeople. Every year about 1.8 million French citizens visit the United States, with a specific preference for March and April, when about 400,000 French fly to the United States.
Mr. Mas condemned the “irrational attitude of Trump who thinks that he is protecting his country by barricading it” and said that he was worried such a ban would prompt other countries to follow suit. “This attitude will go viral in the coming days, if not hours,” he said.Mr. Mas condemned the “irrational attitude of Trump who thinks that he is protecting his country by barricading it” and said that he was worried such a ban would prompt other countries to follow suit. “This attitude will go viral in the coming days, if not hours,” he said.
Aéroports de Paris, the company that runs the two main international airports in Paris, said it was still planning its response to the ban and could not give specific details about its impact.Aéroports de Paris, the company that runs the two main international airports in Paris, said it was still planning its response to the ban and could not give specific details about its impact.
“But it’s a catastrophe, for all travel and tourism sectors, for airline companies, for hotels,” said Sonia Gacic, a spokeswoman.“But it’s a catastrophe, for all travel and tourism sectors, for airline companies, for hotels,” said Sonia Gacic, a spokeswoman.
Reporting was contributed by Alexandra Stevenson from Hong Kong, Niraj Chokshi and Ben Casselman from New York, Constant Méheut and Eva Mbengue from Paris, Jack Ewing from Frankfurt, and Raphael Minder from Madrid.Reporting was contributed by Alexandra Stevenson from Hong Kong, Niraj Chokshi and Ben Casselman from New York, Constant Méheut and Eva Mbengue from Paris, Jack Ewing from Frankfurt, and Raphael Minder from Madrid.