U.S. Airlines Lead the Selloff
American Airlines shares fell more than 5% in midday trading, leading a broad airline selloff. United Airlines dropped around 4%, while JetBlue also fell more than 4%. Delta Air Lines declined over 3%, with the carrier scheduled to report earnings in the coming days. Southwest Airlines also retreated amid the sector-wide downturn. 247wallst.com finance.yahoo.com wsj.com
The selloff reversed gains airlines had enjoyed since a memorandum of understanding between the U.S. and Iran was signed in mid-June, which had stabilized oil prices around $69-70 per barrel for nearly three weeks. U.S. crude surged more than 6% on Wednesday, reaching $75 per barrel, while Brent crude rose 6.2% toward $79. nbcnews.com
European and Indian Carriers Hit Hard
European shares slid to a one-week low, with the travel sector among the hardest hit. IAG, Wizz Air, easyJet, and Ryanair all saw losses as crude prices climbed amid the escalating geopolitical tensions. Indian carriers IndiGo and SpiceJet, which had rallied strongly on the ceasefire agreement in June, reversed course as investors priced in higher fuel costs. ndtvprofit.com angelone.in investing.com reuters.com
Cruise Lines and Broader Market Impact
Cruise operators also fell, with Royal Caribbean and Carnival declining as fuel cost concerns mounted. Royal Caribbean had already flagged fuel cost inflation as a headwind in its April earnings report, projecting fuel costs roughly $1.3 billion higher than earlier forecasts. Norwegian Cruise Line fell 2.1%. keyc.com reuters.com
The Dow Jones Industrial Average dropped 550 points, or 1%, while the S&P 500 fell 0.5% and the Nasdaq Composite slipped 0.2% as of mid-morning. bostonherald.com
