Airlines around the world are struggling to cope with the coronavirus. Indigo has raised the red flag. The airline has warned that daily bookings are declining by over 15 percent and earnings will be materially impacted and now the travel ban announcement will hit the aviation companies even more.
The government has suspended all tourist visas and e-visas granted on or before March 11. All incoming visitors including Indian nationals are advised against non-essential travel. All existing visas with some exceptions stand suspended till April 15 and exceptions include diplomatic, official, employment project visas.
Interglobe Aviation (IndiGo) in the month of January and February had experienced modest impact from coronavirus. It has cancelled flights to China and Hong Kong and has reduced frequency to other South East Asian markets. It has seen a 15-20 percent decline in daily bookings over past few days.
Therefore, the airline expects quarterly earnings to be materially impacted because of Coronavirus scare. The profit warning had come before the travel ban. Now that the travel ban has been announced, one can expect severe pressure on the earnings both for IndiGo and SpiceJet.