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President Donald Trump on Wednesday announced the US was banning most flights from Europe to the states in an effort to stem the spread of COVID-19, the disease caused by the coronavirus.
Airlines have been hit harder by the coronavirus outbreak than they were after 9/11, according to JetBlue CEO Robin Hayes.
Hayes said on CNBC that the airline industry was hit by a 30% decline in demand from August 2001 to October 2001.
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Southwest Airlines CEO Gary Kelly also told CNBC that the decline in demand from the coronavirus outbreak is similar to that in 2011, saying that "it has a 9/11-like feel."
Here's how airlines were impacted after 9/11, what they did, and what they're doing now to handle the fallout from the coronavirus pandemic.
On 9/11, travelers were stranded when all flights were grounded immediately.
Fears of a similar scenario happened on Wednesday when President Trump said that all travel would be banned from Europe, though his remarks were later clarified that US citizens and permanent residents were exempt from the ban.
The ramifications were felt for years after 9/11. United and Continental merged in 2010, and low-cost carriers Southwest and AirTran merged as well.
Now, demand is declining again
Airlines around the world are hurting from decreased demand. United Airlines said on Tuesday that it has experienced a 70% decline in demand for domestic flights, and that it will cut flights in the coming months.
Some airlines might go out of business
Korean Air said that it might go out of business because of the coronavirus pandemic.
Reuters reported that in a note to employees, the company's president, Woo Kee-hong, said that "if the situation continues for a longer period, we may reach the threshold where we cannot guarantee the company's survival."
Korean Air has grounded around 100 of its 145 passenger aircraft, according to the report.
The waiver allows airlines to stop running "ghost flights" — costly, empty flights — that were used to keep essential slots for takeoff and landing.
Airlines could recover more quickly than after 9/11, though the path forward is uncertain
Airlines could recover more quickly than after 9/11, according to Helene Becker, an analyst at Cowen quoted in the Barron's report.
She noted that airlines in China are already starting to recover, but that airlines more reliant on business travel, like American Airlines and Delta Airlines, could experience a longer recovery as the economy struggles.
