TRAVEL shares tumbled yesterday, shedding $22.6 billion as escalating conflict between the US, Israel and Iran disrupted flights worldwide, closed key Middle Eastern hubs and sent oil prices surging, with analysts warning of weeks of disruption.
Data showed at least 4,000 flights had been cancelled around the world in the past three days.
Dubai, the world’s busiest international hub, and Doha remained shut for a third day, leaving tens of thousands of passengers stranded as aviation faced its biggest test since the Covid-19 pandemic. Jordan yesterday became the latest country in the region to partially close its airspace.
Oil prices jumped as much as 13 per cent to their highest since January 2025 as Iran and Israel stepped up attacks, raising the prospect of higher fuel costs for airlines.
US airline shares fell when markets opened yesterday, with American Airlines and United Airlines down more than 6 per cent. A group of 29 leading airlines, hotel and travel companies from Europe, Asia and North America shed a combined $22.6bn in market value yesterday, according to Reuters calculations.
Aviation analytics company Cirium said at least 1,560 flights were cancelled yesterday, meaning more than 4,000 have been cancelled since Saturday.
Shares in TUI, Europe’s largest travel company, were down 9.6pc while Lufthansa declined by 5.7pc and British Airways owner IAG lost 5.4pc. Hotelier Accor and cruise company Carnival also fell sharply.
“Every airline is full and every flight is full because people are just having to take what they can,” said Paul Charles, head of travel consultancy PC Agency, who was himself stranded abroad. Charles said aircraft and crew were scattered around the world in the wrong places in a “nightmare scenario.”
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