Airline share prices have come under broad pressure since joint US-Israeli action against Iran began on February 28, 2026, as investors price a one-two punch of sharply higher jet fuel costs and disrupted networks across the Middle East that force longer routings, cancellations, and tavel demand uncertainty.
In recent sessions, shares of global airlines saw steep selloffs across the largest names worldwide, with some major carriers seeing single-day drops in the high single digits to low double digits. Qantas fell more than 10% at one point, while several large European airline groups also dropped around 5% or more as oil prices jumped and the travel outlook weakened.
British Airways does not trade as a standalone stock, so the market proxy is IAG, its parent. Since the February 27 close, IAG’s London-listed shares fell about 12%, with sharp day-to-day swings as investors digested news about fuel-price pressure and the risk of wider schedule disruption.
Jet fuel prices have surged to multi-year highs, with spot markets showing unusually large premiums versus crude, a setup that tends to squeeze airline margins quickly, especially for carriers with limited hedging. Some airlines have said they can blunt the impact by shifting capacity and adjusting schedules, but investors have largely sold the group as a single global trade that moves with oil prices and the broader geopolitical risk picture.
US airline stocks have fallen sharply after the war with Iran started. Airline shares sold off as Brent crude rose and traders weighed the risk of Middle East travel disruptions. Since then, airlines stocks have continued to trade lower, with several carriers posting double-digit declines.
As of March 5, major US airline stocks still traded below their February 27 closes: Delta Air Lines was down about 7%, United Airlines about 10%, American Airlines about 10%, Southwest about 10%, Alaska Air Group about 15%, and JetBlue about 17%.
The US Global Jets ETF (JETS), a widely used benchmark for airline equities, also slid over the same stretch, ending about 8% lower versus its February 27 close as the sector moved lower.
Most of the Middle East’s best-known airlines do not provide day-to-day stock-market readings because they are not publicly traded. Emirates, Qatar Airways, and Etihad operate under government ownership so there is no listed share price investors can use as a real-time sentiment gauge the way they can with other carriers.
Investors often treat airlines as a single macro trade because jet fuel sits near the top of cost concerns and carriers cannot reprice tickets quickly enough to offset a sudden jump in energy prices. When oil prices spike, it tends to hit airline margins first. Demand comes next if headlines begin worrying air travelers.
The market also tends to punish carriers with weaker balance sheets or less network flexibility during periods of uncertainty. That dynamic helps explain why JetBlue and Alaska fell more than the larger network airlines in the early days of the conflict.
If oil and jet fuel prices continue to climb, it could add additional cost pressure for airlines, while carriers also face the risk of broader disruption from airspace closures, schedule adjustments, and softer demand. Airline shares could move lower still across major markets as the Iran conflict pushes energy costs higher and injects new uncertainty into the global travel outlook.