Airline stocks fall as oil prices surge and Iran conflict disrupts travel
Airline shares across Asia dropped sharply on Monday as soaring oil prices and the escalating conflict between the United States, Israel, and Iran increased pressure on carriers already dealing with restricted airspace and disrupted travel routes.
The war has pushed fuel costs higher, with oil prices jumping about 20 percent in early trading Monday to their highest levels since July 2022. The surge reflects growing fears of tighter global supplies and prolonged disruptions to shipments from the Middle East.
Airlines are facing mounting operational challenges as much of the region’s airspace remains closed due to concerns over missile and drone attacks.
The situation has also triggered a rush among travelers trying to leave the region. Many stranded passengers have reportedly spent large sums to escape, making last-minute trips to airports, traveling overland to less affected hubs, or seeking alternative routes out of the conflict zone.
In some cases, fighter jets have escorted passenger aircraft departing the region to ensure safety.
With commercial flights limited and charter services struggling to handle the demand, some travelers have turned to private jets as thousands attempt to evacuate from the Middle East.
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