Travel stocks sink after thousands of flights grounded following Iran strikes
A display board shows canceled flights to Dubai and Doha amid regional airspace closures at Noi Bai International Airport, amid the U.S.-Israel conflict with Iran, in Hanoi, Vietnam, March 2, 2026. Picture taken with a mobile phone.
Thinh Nguyen | Reuters
Airline and travel stocks fell Monday after airspace closures throughout the Middle East forced carriers to cancel thousands of flights, disrupting trips as far as Brazil and the Philippines.
United Airlines, which has the most international exposure of the U.S. carriers, was down 6% in premarket trading. Service to Tel Aviv, Israel, is one of the airline’s most profitable routes, but airlines were also was forced to pause flights to Dubai, in the United Arab Emirates, one of the busiest airport hubs in the world.
Dubai is a home base for airline Emirates.
Shares of Delta Air Lines and American Airlines were also each off about 6%. Flights through the Middle East were grounded including to destinations like Tel Aviv.
Other carriers like Southwest Airlines, which is more U.S.-focused, had smaller stock moves but shares still fell as investors assessed a possible run-up in oil prices. Fuel is generally airlines’ biggest cost after labor.
Hotel chains also fell, with Marriott International and Hilton Worldwide Holdings down.
International travel has been a bright spot in the travel sector. In January, international air travel demand jumped 5.9% from a year ago while domestic flight demand was nearly flat, the International Air Transport Association, an airline industry group, said in a report on Monday.
