** US airline stocks fell in early trade on Thursday

** Oil prices rose more than 3% on Thursday, extending a rally as the U.S.-Israeli war with Iran escalated

** United Airlines UAL.O down 5.8%, Delta Air Lines DAL.N down 5.1% and American Airlines AAL.O down 4.6%

** Southwest Airlines LUV.N down 4.3%, Alaska Air Group ALK.N falls 7%

** Dow Jones U.S. airlines index .DJUSAR down 4.9%

(Reporting by Rashika Singh in Bengaluru)

((Rashika.Singh@thomsonreuters.com;))