Shares in Asian airlines fell sharply on Monday, penalized by soaring oil prices and the intensification of the conflict between the United States and Israel against Iran, a situation that further weakens a sector already facing significant uncertainties.
Markets reacted to the sharp rise in oil prices, which jumped about 20% at the start of trading, reaching their highest level since July 2022. This surge is explained by concerns related to possible disruptions to energy supply and the impact of the conflict on shipping routes and oil infrastructure.
For airlines, this fuel price increase represents a major cost, as kerosene is one of their main operating expenses. The rapid rise in oil prices therefore risks putting a significant strain on carriers' profit margins.
The situation is further complicated by increasing restrictions in Middle Eastern airspace. Several areas are now considered dangerous due to the presence of missiles, drones, and military operations, forcing airlines to alter their routes or suspend certain services.
In this context, many travelers are trying to leave the region, sometimes paying very high sums to obtain last-minute tickets. Some passengers have even had to travel overland to less affected airports in order to find an available flight.
Air traffic disruptions and geopolitical uncertainty are increasing pressure on the sector, which is already facing operational and financial challenges. Analysts believe that the duration and scale of the conflict could have lasting consequences for the global airline industry if tensions persist.
