New york: Shares of US and European airlines fell on Thursday after the US-led aggression against Iran disrupted the global aviation sector and drove up oil prices. However, shares of several Asian airlines rebounded thanks to the partial resumption of some flights to the Middle East. Governments rushed to organize flights from the Middle East for tens of thousands of citizens stranded amid the escalating conflict, which has led to the closure of most of the region's airspace due to the threat of missile attacks.
According to Yemen News Agency, air traffic remains significantly below normal levels, and the global travel sector is likely to take longer to recover in the absence of any signs of an imminent de-escalation. Air cargo traffic has been affected, disrupting the transport of goods and aircraft parts. Airline shares have fallen sharply since the initial airstrikes earlier in the week, amid concerns about continued air route closures and rising fuel prices. S and P Global Platts said jet fuel prices have surged globally since the strikes on Iran, reaching record highs in Singapore due to supply disruptions.
Shares of several Asian airlines have rebounded or recouped some of their losses, which exceeded 10 percent in recent days, but analysts said these gains may not last. Airspace restrictions have forced airlines to reroute flights, carry extra fuel, or refuel as a precaution against sudden diversions or longer flights over safer routes. Prices on some major global routes have jumped significantly.