MW American, Delta stocks fall as Iran conflict sparks worries about fuel costs, travel demand

By Tomi Kilgore

Airline stocks were among the S&P 500's worst performers, but companies in the travel-services business also fell

Airline stocks drop as the Iran conflict sparks worries about rising fuel costs.

Shares of airlines were taking a broad beating in early trading Monday, as the Iran conflict raised worries about higher fuel costs, as well as the impact on travel demand.

The concerns about fuel costs come as crude-oil prices surged amid worries about supply disruptions. American Airlines Group $(AAL)$ said in its 2025 annual report that fuel made up a fifth of its total operating expenses, while Delta Air Lines $(DAL)$ said fuel represented 17% of its expenses, and fuel accounted for 21% of expenses at United Airlines Holdings $(UAL)$.

Crude-oil futures (CL00) were surging 7.7% in recent trading.

The U.S. Global Jets ETF JETS slumped 4.8% in premarket trading, to put it on track to open at a three-month low. Air carriers, and other travel-related stocks, were among the S&P 500 index's SPX biggest decliners ahead of the open.

It wasn't just fuel costs that worried investors.

Of the three airlines with the most exposure to international travel, United had the most exposure to the Middle East region, which represented 1.5% to 1.7% of the carrier's seat supply for the remainder of 2026, TD Cowen analyst Tom Fitzgerald wrote in a note to clients. American was next, with about 0.8% of its available seat miles earmarked for the Middle East, followed by Delta at between 0.5% and 1%, Fitzgerald wrote.

American's stock slid 6.7% in premarket trading, as United shares dropped 7.2% and Delta shares shed 6.2%.

So far, flight cancellations haven't been much of a problem for the carriers, as United has had nine flights canceled Monday, followed by Delta with four and American with two, according to data provided by FlightAware.

But shares of other airlines also fell, amid worries about the residual negative effect to overall travel demand. Southwest Airlines shares $(LUV)$ lost 5.3% in the premarket and JetBlue Airways shares $(JBLU)$ were down 3.4%.

Besides airlines, shares of cruise operators also took a hit Monday, as did the stocks of other travel-services companies, such as Expedia (EXPE), Airbnb $(ABNB)$ and Marriott International $(MAR)$.

-Tomi Kilgore

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

March 02, 2026 09:24 ET (14:24 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.