International travel stocks were under heavy pressure on Monday as the escalating conflict between the United States, Israel, and Iran caused significant disruptions in air travel, the closure of key hubs in the Middle East, and a rise in oil prices.
Major international air hubs in Dubai and Doha remained closed for a third consecutive day, stranding tens of thousands of passengers in what is being called the aviation industry’s biggest crisis since the pandemic.
Meanwhile, Jordan partially closed its airspace, while oil prices rose by up to 13%, reaching their highest level since January 2025, increasing pressure on the operating costs of airlines.
According to estimates, the largest airlines lost a total of over $11 billion in market value. TUI’s stock fell 9.6%, while Lufthansa and IAG, the parent company of British Airways, also saw losses. A decline was also noted in large hospitality and cruise companies.
American airlines saw a drop of about 5% in pre-conference trading.
The disruption is attributed to rising fuel costs, flight cancellations, and the need for rerouting, despite risk mitigation measures implemented by several carriers.
Etihad has restarted a limited number of flights, while Ben Gurion Airport in Israel announced that it will reopen on a limited scale.
The crisis also affected Asian markets, with significant losses for major airlines in Japan, China, Malaysia, and Taiwan. Airlines have cancelled flights to the Middle East, while Singapore Airlines announced that it will suspend flights to and from Dubai until March 7.
Air India canceled flights between India and European and Middle Eastern destinations, and announced that flights to New York and Newark will be with a layover in Rome.
According to data, airlines in mainland China canceled 26.5% of flights to and from the Middle East from March 2 to 8.
The effects were also felt by travelers, with mass cancellations and changes in schedules. Passengers reported difficulties in communicating with airlines and limited information, and in several cases they had to seek alternative routes for their return.
Source: Reuters
