Airline stocks fall amid Middle East tensions and fuel cost increases

Shares of major U.S. airlines, including American Airlines, Delta Air Lines, and United Airlines, significantly dropped in premarket trading due to escalating Middle East tensions and a surge in crude oil prices. The conflict in Iran has raised concerns about increased fuel costs, which constitute a large portion of airline operating expenses, and potential weakness in travel demand. United Airlines faces the highest exposure with 1.5-1.7% of its seat supply allocated to the Middle East through 2026, making it particularly vulnerable to prolonged oil price elevation and regional disruptions.