Airline stocks are under pressure Monday after joint U.S.–Israel military strikes on Iran led to regional airspace closures, a sharp rise in oil prices and thousands of canceled flights.
U.S. Launches Combat Operations; Iran Retaliates
President Donald Trump said Saturday that the U.S. began "major combat operations" in Iran aimed at dismantling the country's military infrastructure and eliminating its nuclear program. Iran's Islamic Revolutionary Guard Corps said it responded with a large-scale wave of missile and drone attacks toward Israel. Several countries in the region shut their airspace.
Delta Air Lines Inc. (NYSE:DAL) suspended flights between New York's JFK airport and Tel Aviv through March 8 and return service through March 9. United Airlines Holdings Inc. (NASDAQ:UAL) halted Tel Aviv service through March 6 and canceled flights to and from Dubai through March 4. American Airlines Group Inc. (NASDAQ:AAL) canceled its Philadelphia-to-Doha route through March 4.
More than 2,400 flights were canceled Sunday, while flight-tracking data showed airspace over Iran, Kuwait, Bahrain and Iraq remained closed. International carriers including Emirates, Qatar Airways, British Airways and Lufthansa also announced suspensions.
Oil prices surged on fears the conflict could disrupt shipments through the Strait of Hormuz, adding further pressure to the airline sector.
Shares of Delta, United, American Airlines and Southwest Airlines Co. (NYSE:LUV) were all trading lower Monday as investors reacted to the escalating conflict and widespread flight cancellations.
Airline Shares Fall Lower
Price Action: At the time of writing, Delta shares are trading 2.56% lower at $64.04, United shares are trading 4.09% lower at $101.91, American shares are trading 4.82% lower at $12.44 and Southwest shares are trading 2.48% lower at $48.10, according to data from Benzinga Pro.
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