Airlines worldwide continue to suspend services as the conflict between the US, Israel and Iran intensifies, triggering widespread disruption across global aviation.
More than 12,300 flights have been cancelled since hostilities began, according to Flightradar24, as carriers respond to mounting safety concerns. Thousands of passengers have been stranded, while airline shares have come under heavy selling pressure.
The industry is also grappling with sharply higher fuel costs after Brent crude surged roughly 20% following the outbreak of war, reaching its highest level since July 2024.
In London, the FTSE 100 fell 2.7%, with airline stocks among the worst performers. International Airlines Group, owner of British Airways, dropped 6.6%, while Wizz Air slid 4.7% and easyJet declined 4.3%.
In Australia, Qantas Airways chief executive Vanessa Hudson said the airline had “pretty good” fuel hedging in place, though she acknowledged that the spike in oil prices posed a significant challenge for the sector. Qantas shares fell for a second consecutive session, closing down 1.8%.
Across Europe, aviation stocks remained under pressure as the industry sought to adapt to the closure of Gulf airspace. IAG fell 6.8%, while Air France-KLM lost 6.9% and Lufthansa dropped 4.4%. Budget carriers were also hit, with Wizz Air down 5.5% and Ryanair falling 2.9%.
The unprecedented shutdown of three of the Middle East’s main aviation hubs — Dubai, Abu Dhabi and Doha — has compounded disruption, creating significant operational challenges and widespread passenger delays.
