(BFM Bourse) – The airline sector is under pressure on the stock market. Several airlines have had to suspend flights to Israel and the Palestinian Territories following the Hamas terrorist attack on Israel this weekend. Rising oil prices are also weighing on these companies.
The outbreak of a surprise Hamas terrorist attack on Israel this weekend forced several airlines to cancel flights to or from Tel Aviv. In a note published this weekend, the Ministry of Foreign Affairs also advises against any travel to Israel and the Palestinian Territories.
And on the stock market, the sector is logically under pressure after these flight cancellations. On the Paris Stock Exchange, Air France-KLM suffered the biggest drop in the SBF 120 and lost 4.3%. The French airline said it had suspended its flights to Tel Aviv until further notice.
“In coordination with the French Directorate General of Civil Aviation and the Israeli authorities, Air France is suspending its service to Tel Aviv until further notice,” said a spokesperson for the company, which usually operates two flights per day. day to Tel Aviv.
Transavia, the “low cost” subsidiary of the Air France-KLM group, announced in a press release that it would cancel all its flights to Tel Aviv until Monday inclusive.
International Airline Group (IAG), the company born from the merger of British Airlines and the Spanish Iberia, lost 5.2% in London. The German airline Lufthansa, for its part, returned 2.8% in Frankfurt while Easyjet and Wizz Air showed the biggest declines in the sector in Europe, and fell by 5.4% and 7.3%, respectively in Dublin and London. .
Oil prices also weigh
“Geopolitical tensions are increasing risk aversion and this penalizes cyclical stocks like airlines,” reports an analyst based in London.
The rise in oil prices is also weighing on the sector because it increases the operating costs of these airlines. Black gold, very sensitive to geopolitical risk, especially in the Middle East, is progressing strongly, with the December contract for a barrel of Brent from the North Sea advancing 3.37% to 87.43 dollars per barrel on Monday morning.
Tour operators are also penalized. Voyageurs du Monde lost 2.6% on the Paris Stock Exchange while the German TUI lost 1.7% in Frankfurt.
Sabrina Sadgui – ©2023 BFM Bourse
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