STORY: Airfares soared on Monday as the U.S.-Israeli war with Iran sent oil prices surging.
And airline stocks took a battering too as fears of a deep travel slump and a potential for the widespread grounding of planes.
Oil prices were trading more than 15% higher at levels not seen since 2022.
That piles pressure on carriers already navigating tight airspace as travelers scramble to evade the Middle East.
In Asia, airlines bearing the brunt of investor fears included Korean Air Lines which tumbled 8.6% and Air New Zealand which lost 7.8%.
Underscoring that pain on the consumer side were jumps in ticket prices.
Direct flights from Seoul to London on March 11 with Korean Air Lines leapt to $4,359.
That's up from $564 seven days earlier, according to Google Flights data.
Analysts say the impact of high airfares could limit travel demand for much of the year.
Fuel is the second-largest expense for air carriers after labor.
It typically accounts for a fifth to a quarter of operating expenses.
Some major Asian and European airlines have oil hedging in place.
But U.S. airlines largely stopped the practice over the last two decades.
Data shows that since February 28, more than 37,000 flights to and from the Middle East have been canceled.
With airspace severely constrained, airlines have also been forced to reroute flights, carry extra fuel or make additional refueling stops.
