The coronavirus epidemic is leading to cancelled conferences and international holidays and, as a result, lower passenger load on international flights. According to an initial impact assessment from International Air Transport Association, the coronavirus outbreak could cause demand for air travel to fall for the first time since the global financial crisis, with operators in Asia-Pacific the worst hit.
Not surprisingly, shares of InterGlobe Aviation Ltd, which runs India’s biggest airline IndiGo, have been turbulent. On Friday, InterGlobe shares fell almost 11% in early trade, as fears of the virus gripped global financial markets.
For IndiGo, the international portfolio is growing fast, and there is an increasing risk to this business with the virus continuing to spread.
