Following Microsoft’s major tech outage, disruptions across the UK’s leading airlines have resulted in a staggering loss of £3.37 billion.
Airlines have been plagued with delays and cancellation in the wake of the global technical glitch, as brands worldwide were significantly impacted.
Analysis from investment data platform Stocklytics takes a deep dive into the airline industry as passengers are faced with yet more disruption – days after the outage.
Looking at the market performance of leading airlines British Airways (IAG), Ryanair, Easyjet and Wizz Air, the data estimates a collective loss of over £3 billion in company value.
British Airways (IAG): £500 million loss
British Airways which falls under IAG (International Consolidated Airlines Group) saw a fall of 5.9% in its share price.
Share price fell from £172.90 at close on July 18 to £162.75 today. This resulted in a decrease of £500 million in its company value.
IAG’s company value fell from £8.63 billion (close on July 18) to £8.13 billion (22 July).
Ryanair: £2 billion loss
Ryanair experienced a greater loss, with its share price plummeting by 12% in a five day period.
According to the Euronext Dublin Exchange, its share price closed at €17.50 (£14.73) on July 18, before falling to €15.40 (£12.96) on July 22.
At close on July 18, Ryanair Holdings PLC was worth approximately €19.90 billion (£16.74 billion) decreasing to €17.51 billion (£14.73 billion) by today – a total loss of €2.39 billion (£2.01 billion)
Easyjet: £290 million loss
Easyjet saw its share price fall by 8.2% from £459 at close on 18 July to £421.20 (July 22).
This resulted in a loss of £290 million to its company value. According to the data, Easyjet recorded a market value of £3.48 billion on July 18, with this falling considerably to £3.19 billion on July 22.
Wizz Air: £190 million loss
Low cost airline Wizz Air was also subjected to losses, with the company experiencing a fall of 8.42%.
Share prices fell from £2,256 at close on July 18 to £2,066 by July 22. This resulted in a £190 million loss to its company value within that period.
Wizz Air recorded a market value of £2.31 billion at close on July 18, with this figure falling significantly to £2.12 billion by July 22.
A spokesperson for Stocklytics shares:“An IT outage of this magnitude for Microsoft has led to widespread disruption across the globe, with the airline industry taking a significant hit as a result.
“As passengers have been plagued with delays and cancellations since the tech glitch first occurred five days ago, leading airlines have seen their company value fall significantly, with recent data estimating a market value loss of £3.37 billion.
“Budget airline Ryanair experienced the greatest loss, with markets recording a 12% fall in the company’s share price since close on July 18, while fellow low cost airlines Wizz Air and Easyjet closely followed as share price fell by around 8%.
“With travel disruption continuing in the fallout of the outage, further losses are predicted before airlines are expected to show any signs of recouping. The outage serves as a reminder that when things go wrong at major global companies such as Microsoft, the impact on investors can be just as significant.”
