Auckland International Airport shares have been under the pump as investors shy away from firms exposed to the covid-19 outbreak. Photo / File
Auckland International Airport shares have been under the pump as investors shy away from firms exposed to the covid-19 outbreak. Photo / File
Trading in Auckland International Airport shares has been halted while the country's main gateway works out what a ban on travel from Europe to the US means for its business.
The company sought the halt just before 4pm, with the shares down 8.1 per cent at $7.73. Like other travel-focusedbusinesses, its shares have been under the pump as investors shy away from firms exposed to the covid-19 outbreak. The stock has dropped almost 19 per cent this year.
The World Health Organisation formally declared the outbreak to be a pandemic today, sparking another sell-off on equity markets around the world.
And that took another turn this afternoon, when US President Donald Trump announced a 30-day travel ban from Europe to the US, starting Friday. The restriction excludes Britain.
"There have been a number of significant events today in the global market. Auckland Airport is currently assessing the impact, and we will be issuing new market guidance in due course," a spokeswoman said in a statement.
Last month, the airport operator cut its annual earnings guidance by $5 million due to the virus outbreak, forecasting underlying profit of $260m to $270m.
New Zealand has bans in place on foreign nationals entering the country from or through Iran and China, and requires travellers from Italy and South Korea to isolate themselves for 14 days.
Air New Zealand has shrunk its total capacity by a tenth since the outbreak as it contends with fewer passengers. The airline dropped its earnings forecast and is tightening its belt further to deal with the reduced demand.
