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The FTSEurofirst 300 was down 2.1 per cent at 09:05 BST, Reuters reports, falling to 797.04 points.
Airlines were among the firms worst affected by the slump, with Ryanair dropping 3.7 per cent and British Airways declining 5.6 per cent.
And analyst Sebastien Barthelemi told the news source that oil companies are also "vulnerable" in the current climate, with worries over the spread of the virus impacting global travel.
"Drug companies could benefit from the situation," he added, while manufacturers of luxury goods - such as Burberry and Bulgari - have also seen their values slide.
Concerns over swine flu have also hit the FTSE 100, which has dropped by almost two per cent in the morning session of stock market trading, with TUI Travel and Carnival recording falls.
