Airline shares tumbled worldwide after the United States and Israeli war with Iran sent oil prices surging above $105 a barrel, at one point jumping as much as 29 percent. The spike, driven by supply cuts and fears of prolonged shipping disruptions, pushed some jet fuel prices to double since the conflict began, raising concerns about a deep and prolonged slump in global travel.

Carriers across Asia, Europe, and the United States saw sharp stock declines as investors feared mounting costs and weakening demand. Analysts warned that without near-term relief, airlines could be forced to ground thousands of aircraft, with financially weaker carriers at risk of halting operations altogether.

Airfares have already soared, with some long-haul ticket prices increasing severalfold within days. Higher prices may deter leisure travelers and prompt companies to limit business travel, potentially dampening demand throughout 2026. Fuel, typically one of the largest expenses for airlines after labor, has become even more burdensome as rerouted flights and closed airspace add to operational strain.

More than 37,000 flights to and from the Middle East have been canceled since late February, and major regional hubs are facing severe constraints. Airlines are flying longer routes, carrying extra fuel, and making additional refueling stops, compounding costs and intensifying pressure on an industry already navigating significant disruption.