Airlines, leisure stocks sink as Middle East conflict causes travel chaos

Norwegian Air Shuttle ASA

02/03/2026 08:45

Updates with sector moves in bullets 2-3

** Airlines and travel stocks tumble as the Middle East conflict escalation leads to uncertainty

** Hotel and travel-linked groups including Accor ACCP.PA, IHG IHG.L, Amadeus AMA.MC, TUI TUI1n.DE are down between 5%-10%

** Shares in airlines Lufthansa LHAG.DE, Air France KLM AIRF.PA, Norwegian Air NAS.OL, Finnair FIA1S.HE  and Ryanair RYA.I, IAG ICAG.L and Wizz Air WIZZ.L fall around 5%-10%

** J.P. Morgan warns of risks to the sector from flight cancellations and operational disruption, higher oil prices and the potential for softer demand and pricing

** European airlines all have fuel hedging in place, but an oil price spike will translate to higher fuel costs, JPM says

** Oddo BHF and MWB say TUI is directly exposed through TUI Cruises deployments in Gulf ports and indirectly through their heavy reliance on Middle Eastern airspace corridors for long-haul flight

(Reporting by Bernadette Hogg)

((bernadette.hogg@thomsonreuters.com))