When terrorists strike, the effects can reverberate across the globe. These high-profile and devastating tragedies impact human behavior in a variety of wꦰays, immediately after the event and long into the future.

People often ret♋hink their travel plans after attacks, becoming more cautious about traveling in general and to certain parts of the world in par🍨ticular.

This change 🐽in behavior can lead to a drop in the number of people planning trips and booking flights.

And whether terror🍸ism directly targets aviation or not, it also means that airlines and airports must spend on complex security features to protect people, facilities, and major equipment against future attacks.

As a result, airlines' revenues and profitability can experience a detrimental financial effect from terrorism.

Changes in Travel Due to Terrorist Attacks

Terrorism is designed to affect many aspects of life. For example, the 9/11 attacks in the United States were intended to devastate belief in national security, not just in the U.S. but in nations across the world.

They were also calculated to damage the U.S. economy, in large part by hurting the aviation industry, as well as the country's society, by causing confusion, instilling fear, and changing behaviors that had supported economic well-being.

In fact, the U.S. suffered a 澳洲幸运5官方开奖结果体彩网:recession that lasted for six months and required intervention by the government.

In ൩addition to a lack of travelers, the need for proactive efforts to secure the aviation industry itself from the effects of terrorism can be costly🌠.

Research by Cornell University showed that after 9/11, the required screening of baggage resulted in a reduction in passenger volume of about 6%, with a reduction of 9% at the nation's busiest airports. This represented a loss of approximately $1 billion for the airline industry.

The Effect on Carriers' Stocks

Stocks of some airlines often lose value after terrorist attacks while others may not. As an example, let's look at the attacks in Paris in November 2015 and Brussels in March 2016, which killed and injured scores of people.

Most of the major European airlines 澳洲幸运5官方开奖结果体彩网:announced their earnings relatively soon after the Paris attacks. A majori💮ty of those reports mentioned weakeღning demand related to the attacks.

The effects were worsened after the 2016 Brussels bombings, likely because the attacks occurred in an airport terminal and metro station.

Ryanair 

Europe's largest low-cost airline lost over 10% of its stock value in the six months following the Paris attacks, eventually culminating in a more than 25% loss following the Brussels bombings. 

easyJet

After the attacks, Europe’s number two low-cost carrier reported a half-year loss of $34.6 million. The company said that a 🅷few things 🍷contributed to these results.

French air traffic controllers went on str﷽ike earlier that spring, which caused hundreds of flights to be canceled.

In addition, the company said that the 澳洲幸运5官方开奖结果体彩网:terrorist attacks affected the demand for air travel. The airline lowered its ticket prices in an attempt to get people back in the air. 

International Airlines Group (IAG)

IAG subsidiaries British Airways and Iberia, as well as Irish carrier Aer Lingus, stated that demand in March 2016 was notably weaker due to the attacks in Brussels.

"Revenue trends in quarter two have been affected by the aftermath of the Brussels terrorist attacks, as well as some softness in underlying premium demand,” IAG CEO Willie Walsh said in a statement. “As a result, IAG has moderated its short-term capacity growth plans."

Deutsche Lufthansa AG

Commonly referred to as Lufthansa, Europe’s largest airline also reported weakness in the same quarter. It attributed most of its issues to 澳洲幸运5官方开奖结果体彩网:increased competition and pricing.

However, Chief Financial Officer Simone Menne mentioned that the company saw a drop in demand in both U.S. and Asian group bookings after the Brussels attacks.

Air France-KLM 

Another of Europe’s large airlines said they lost roughly $76 million in the aftermath of the November 2015 Paris attacks. However, the company reported that it experienced a quick recovery in terms of passenger numbers by December.

Delta Air Lines, Inc.

Out of the three U.S.-based airlines that fly to Europe, Delta Airlines, Inc. was💯 the only one that indic🦄ated that terrorism had an effect on its business in the first quarter.

The airline reported a 2016 first-quarter 澳洲幸运5官方开奖结果体彩网:operating revenue decrease of 1.5%. Management reported that the Brussels attacks reduced operating revenue by $5 million.

The Bottom Line

The financial health of airlines, which play a large role in the ecoꦿnomies of many countries across the global, can suffer when terrorist attacks occur.

Travel by air can decrease, hurting passenger revenue. Furthermore, for the protection of people, cargo, and the aviation industry as a whole, money must be spent to ensur꧂e passenger safety and the ongoing function of efficie♐nt travel by air.

Sometimes, airline stocks decline for the short-term after a ter♚rorist attack, as was the case for airlines after the attacks in Paris and Brussels in 2015 and 2016, respectively.