How Hard Will the European Flight Ban Hit the Airline Industry?

In a word, very. Layoffs seem likely, and bailouts could be down the line.

near-empty airplane
Airline stocks, which were already down as much as 45%, took a further nosedive in premarket trading this morning. Getty Images

Key Insights:

Among the many surprises to come out of Wednesday night’s national televised address by President Donald Trump, the biggest was easily a travel ban slapped on most of Europe. Starting Friday at midnight, the government will suspend flights to and from the continent for 30 days. The ban affects the so-called Schengen Area—26 EU states that require no passport control for residents moving among them—which includes France, Italy, Spain and Germany. (For now, it omits the U.K.)

@UpperEastRob Robert Klara is a senior editor, brands at Adweek, where he specializes in covering the evolution and impact of brands.