Swine Flu and Stock market

I dont know if this is strange but I am trying to understand why a pandemic such as Swine Flu could affect the markets. Ok, I understand Livestocks getting hit because businesses dealing with porks can be affected. The import of Pork meat from Mexico may be hindered and export companies and mass-production companies may see some hindrance (still this news is to premature to react upon). However, WHO came out and said that it is safe to eat the meat as the strain of the virus cannot survive normal cooking temperature.

But why Mexican Peso - that you lost confidence on holding this currency because the country could devalue its currency? What is the reasoning behind this?

Why Airlines - because their revenue will be affected? how? People dont want to travel to Mexico? People who already booked tickets to Mexico are either going to travel with caution or loose their ticket (or take up on insurance ). May be you will not book tickets to Mexico, US etc. So it will affect future bookings, depending upon how quickly scientists come up with an answer to this flu. But isn't this news too early to loose confidence on airline industry now.

I guess stock market lost control. It reacts to any timid news these days. Wait for our president to sneeze!!!