US ban of European Travel decoded- What is it ? How does it affect airlines ?

Varoius Delta Airlines Tails

Trump announced on Wednesday that US will be suspending all travel from Europe to US for the next 30 days. This is after the total cases in US is on the rise with currently home to 1,629 cases with 41 deaths reported in the country by CDC. This ban comes at a time when countries are closing its borders and placing restrictions to prevent the spread of the disease.

What is the travel ban ?

This travel ban applies only to foreign citizens and allows US citizens to enter USA from Europe. The ban applies to countries in the Schengen zone excluding UK and Ireland. There are 26 countries in the Schengen zone. This ban is currently set to last for 30 days. US passengers who have been in the countries listed in the ban would have to travel through selective airports in the country where US has implemented extensive screening procedures.

How is it affecting airlines ?

All airlines operating transatlantic routes have been affected. This ban would result in drastic drop in flights and massive cancellation though the demand between the two is likely to increase between the UK and the US as UK and Ireland now become the only point of entry into the US from Europe. On Thursday, all the 3 major US airlines namely American Airlines, Delta, United announced caps on their transatlantic fares. American Airlines said in a statement that they have capped fares from the us at $1000.

Lufthansa Tails at Frankfirt Airport

Lufthansa Group will be one of the most affected airlines due to this travel ban imposed on Europe                      Photo: Konstantin von Wedelstaedt- Wikicommons

Lufthansa Group, Air France-KLM would take most of the brunt in Europe and British Airways seems the least affected of the major airlines in Europe. In a statement Finnair has already cancelled all its flights to and from the US.  Financial Analysts are predicting that airlines with a good financial backup would be able together the storm provided it would last from 3 to 6 months but low cost airlines and other airlines would find it difficult without help from the government for its survival. An example was Flybe which went bankrupt last week and blamed coronavirus party for its collapse.

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