Asian Airline Shares Plummet as Oil Prices Soar Amid Iran Conflict
Airline shares plummeted across Asia on Monday as oil prices surged to their highest level since July 2022, driven by the escalating U.S.-Israeli war with Iran. The conflict has led to a significant increase in fuel costs, which account for about one-fifth to one-quarter of operating expenses for airlines.
The U.S.-Israeli war with Iran began on February 28, and since then, over 37,000 flights to and from the Middle East have been cancelled, according to data from Cirium. This has caused chaos in the region's airspace, forcing airlines to reroute flights, carry extra fuel or make additional refuelling stops.
Brendan Sobie, a Singapore-based independent aviation analyst, stated that the operating environment for airlines had already been difficult due to political and economic uncertainty and supply chain issues. With the added pressure of the oil price spike and Middle Eastern crisis, he noted that 'the already high level of uncertainty has increased even further.'