STORY: Travel shares fell sharply on Monday as escalating conflict between the U.S., Israel and Iran disrupted flights around the globe.
Key Middle Eastern hubs were forced to close because of the conflict which has sent oil prices surging to their highest in months.
Airports including Dubai, the world's busiest international hub, and Doha closed for a third day.
Data provided to Reuters shows more than 2000 flights to major airports in the region have been canceled, with that number expected to rise.
Tens of thousands of passengers are stranded in one of the sharpest aviation shocks in recent years.
Shares in TUI, Europe's largest travel company, plummeted 7% in early trade.
British Airways-owner IAG was down 9%, while Lufthansa and Air France-KLM also dropped.
Many Asian airlines suffered losses as Chinese airlines had canceled over 25% of flights to and from the Middle East, according to a data provider.
U.S. airline shares dropped around 5% in pre-market trading.
Analysts cited rising fuel costs, cancellations and rerouting expenses as the main pressure points for airlines, despite most having hedged their fuel.
Indian carriers were said to be particularly exposed due to heavy Middle Eastern schedules and a ban on using Pakistan's airspace on flights to and from Europe.
Cathay Pacific fell sharply before trimming losses and said it would waive rebooking fees for affected customers.
The ripple effects have hit travelers worldwide.
Dubai was the world's busiest international airport in 2024 with 92 million passengers, according to data, while Doha ranked tenth.
