The last thing anyone should be worried about when an airplane crashes is when much their portfolio may be affected, but the crash landing of Air Canada flight 624 this weekend in Halifax no doubt had the company’s investors checking the stock when markets opened.
They needn’t have worried. The crash, which thankfully resulted in no fatalities and merely minor injuries, caused a modest selloff in the airline’s share price Monday, however the harrowing event will probably have little or no effect on the stock moving forward if history is any suggestion.
\”This is a very rare event which will likely be quickly forgotten,\” said David Tyerman, analyst at Canaccord Genuity. \”The loss around the aircraft is likely covered mostly by insurance and so i doubt there\’ll any material on-going impact.\”
Aviation disasters have had a varying affect on the stock prices of both airlines involved and their rivals over the years, but the timing and magnitude associated with a loss is often determined by the severity of the incident.