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

By Tomi Kilgore

Airline stocks were broadly lower, and shares of companies in other travel-related businesses also fell

Airline stocks dropped as the Iran conflict sparked worries about rising fuel costs.

Shares of airlines took a broad beating 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).

The U.S. Global Jets ETF JETS slumped 2.6% on Monday, as crude-oil futures (CL00) surged 6.5%, but had pared earlier gains of as much as 12.3%.

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 4.2 on Monday, as United shares dropped 2.9% and Delta shares shed 2.2%.

TD Cowen's Fitzgerald said while Middle East exposure is modest for U.S. airlines, "fuel shocks will pressure earnings." Much of the impact to profits will depend on how long the conflict lasts, and whether oil supply disruptions continue.

So far, flight cancellations haven't been much of a problem for the carriers, as United has had 10 flights canceled Monday at last check, followed by Delta with four, according to FlightAware. Earlier, FlightAware data showed the American had two flights canceled.

But shares of other airlines also fell, amid worries about the residual negative effect to overall travel demand. Southwest Airlines shares (LUV) lost 2%, JetBlue Airways shares (JBLU) were down 2.6% and Alaska Air Group's stock (ALK) fell 1.6%.

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

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03-02-26 1707ET