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Be the first with the news that moves the market- Exchange Income Corporation’s (TSX:EIF) aerospace and aviation operations are continuing to be affected by the COVID-19 outbreak
- The company’s regional airline and leasing operations are expecting a downturn in passenger numbers
- However, the company believes its essential regional flights and its maritime surveillance operations will remain unaffected
- Exchange Income has withdrawn its 2020 guidance and stated it will provide an updated outlook once the market stabilises
- Exchange Income Corporation (EIF) is down 20.65 per cent, with shares trading for C$18.02 and a market cap of $625.9 million
Exchange Income Corporation (TSX:EIF) has updated shareholders on COVID-19’s ongoing impact on the company’s aerospace and aviation operations.
The coronavirus outbreak has been struck the airline industry hard. Flight cancellations, travel bans, and a general economic downturn, all contribute to an unpredictable industry market.
To help limit COVID-19 direct impact on its operations, Exchange Income has implement a strict screening process aboard all its flights. The company has also begun disinfecting each plane after landing to limit cross-flight infections.
The company was quick to point out that many of its airlines fly into remote communities in Northern Canada. These locations can often only be reached by plane, with track routes cut-off by seasonal weather conditions.
Exchange Income currently doesn’t operate any international flights. As a result, the company doesn’t expect its remote regional operations to be affected by travel restrictions.
A portion of these flights ferry food and medical supplies to remote communities. This means further movement restrictions won’t apply, as the flights are deemed essential.
However, the company is expecting a slight downturn as people in these communities choose to self-isolate at home. Income Exchange expects a greater downturn in its aircraft leasing operations as well.
Furthermore, the company’ maritime surveillance activities do not ferry passengers and are often related to national security. Therefore, they will likely remain unaffected throughout the outbreak.
The company is currently in talks with the government to provide medical evacuation services for at-risk patients, if required.
Despite these claims, Exchange Income has withdrawn its 2020 guidance and stated it will provide an updated outlook once the market stabilises.
Exchange Income Corporation (EIF) is down 20.65 per cent, with shares trading for C$18.02 at 4:00pm EST.
