Airline stocks fell sharply on Monday as the escalating conflict in the Middle East forced governments and airlines to shut down airports and cancel flights, sending oil prices surging.
The sell-off followed weekend strikes on Iran by the United States and Israel and retaliation by Iran on targets across the region. President Trump said he expected the attacks on Iran to continue for about “four to five weeks.”
Oil prices jumped more than 8 percent. Gold rose more than 2 percent as investors sought assets that are seen as safe havens.
Higher oil prices will drive up the price of jet fuel, hurting airlines’ profits. In addition, the conflict is likely to force travelers to cancel or put off their trips, particularly on international flights that tend to be more profitable for carriers than shorter, domestic routes.
The share prices of American Airlines, United Airlines and Delta Air Lines fell more than 6 percent Monday morning, while Alaska Air Group dropped about 5 percent. United and American suspended regional service, and Delta extended cancellations to Tel Aviv through March 31.
Stocks also fell in Asia. Shares of Singapore Airlines dropped more than 4 percent. Japan’s ANA Holdings, Japan Airlines and Hong Kong’s Cathay Pacific also fell by similar amounts.
In Europe, shares of Lufthansa, Air France and IAG, the parent company of British Airways, dropped 6 percent or more in premarket trading.
The pressure also spread beyond airlines. TUI, Europe’s largest travel company, was down 9 percent. Share prices of hotel and cruise operators also declined. At the same time, energy shares rallied.
Kailyn Rhone is a Times business reporter and the 2025 David Carr fellow.
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