Shares in Europe's three largest airline shares sank this afternoon to levels lower than after the September 11th, 2001, attacks as war in Iraq hammered global bookings.
War has worsened a record slump for full-service airlines already hurt by low-fare rivals, rising costs, the economic slowdown and travel worries after the September attacks.
War-hit bookings are down as much as 40 per cent on some routes, a US industry lobby reported this week, as carriers announced cuts to flights and jobs.
In Europe, where top airlines have stronger balance sheets than hard-hit US rivals, all three of the largest carriers, Air France, British Airways and Germany's Lufthansa, cut services this week. Europe's three biggest players all slipped below levels hit in September 2001 though some remained above lows hit last October after a bomb blast in Bali rekindled travel fears.
A profit warning from Australia's Qantas Airways added to woes in Asia, where a mystery virus traced to China triggered concern about slower ticket sales across the region.
Qantas fell 9.64 per cent to an 18-month low of A$3.00 after warning its 2003 profit would probably be 15 per cent below analysts' expectations and it cut international flights by 20 percent.
Outbreaks of severe acute respiratory syndrome (SARS) have triggered warnings to travellers to avoid visiting China, Hong Kong, Vietnam and Singapore, the areas worst hit.