Trump administration bans Chinese passenger carriers from U.S. flights

The Trump administration has banned Chinese passenger carriers from flying to the U.S. starting in mid-June. The Department of Transportation said the order will be served on Air China (AIRYY), Beijing Capital Airlines, China Eastern Airlines (CEA), China Southern Airlines (ZNH), Hainan Airlines, Sichuan Airlines, and Xiamen Airlines. CHINESE PASSENGER CARRIER BAN: According to the Department of Transportation, "responding to the failure of the Government of the People's Republic of China to permit U.S. carriers to exercise the full extent of their bilateral right to conduct scheduled passenger air services to and from China, we will serve this Order on Air China Limited d/b/a/ Air China; Beijing Capital Airlines Co., Ltd.; China Eastern Airlines Corporation Limited; China Southern Airlines Company Limited; Hainan Airlines Holding Co. Ltd.; Sichuan Airlines Co., Ltd.; and Xiamen Airlines; all certificated U.S. carriers operating large aircraft; the Embassy of the People's Republic of China in Washington, D.C.; the Civil Aviation Authority of China; the Department of State; the Transportation Security Administration; and the Federal Aviation Administration." Publicly traded U.S. air carriers that have offered passenger flights to China include American Airlines (AAL), Delta (DAL) and United (UAL). PRICE ACTION: In afternoon trading in New York, shares of Air China have dropped almost 1% to $12.90. Meanwhile, China Eastern Airlines is fractionally up at $18.58 and China Southern Airlines has gained over 2% to $22.58. Reference Link