IAG, easyjet and Carnival sink as travel stocks hit by geopolitical tensions
Published: 10:28 12 Jun 2025 BST
Airlines and travel stocks fell in Europe and the US, as oil and gold prices also rose amidst heightened geopolitical tensions.
Tensions in the Middle East weighed on expectations for leisure travel, while rising oil prices bode badly for airline and cruise ship profit margins.
British Airways owner International Consolidated Airlines Group SA (LSE:IAG) is down 2.6% and easyJet PLC (LSE:EZJ) 1.8% lower on the FTSE.
Intercontinental Hotels Group PLC (LSE:IHG) is down 2.2% and Whitbread PLC (LSE:WTB) 1.5% lower.
Crude oil hovered near two-month highs at $69 a barrel, driven by rising US-Iran tensions and fears of supply disruptions, said analyst Matt Britzman at HL.
US President Donald Trump questioned the chances of an Iran nuclear deal and Tehran said it would hit US military bases if attacked.
Gold prices are also remaining elevated at $3360 an oz, with the yellow metal's safe-haven appeal also gaining traction from geopolitical tensions.
Among the mid- and small-caps, Wizz Air Holdings PLC (AIM:WIZZ) has dropped 3.5%, while On the Beach Group (LSE:OTB) has fallen 3.9%.
Cruise operator Carnival is down 3% too.
This follows falls for US airlines and cruise liners overnight, with United Airlines Holdings Inc (NASDAQ:UAL) down 5.5%, Delta Air Lines Inc (NYSE:DAL), Southwest Airlines Co (NYSE:LUV), and Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) all slipping at least 2.5%.
The Euro Stoxx 600 is down 0.6%, with TUI, Carnival and Lufthansa leading the fallers.
At the same time as geopolitical tensions were rising, optimism about energy demand grew after the US and China reached a trade framework, and US crude stockpiles fell more than expected, signalling strong consumption, said Britzman.
Uncertainty around the Middle East also "sowed doubt in the minds of investors", said Neil Wilson at Saxo, saying Washington and Iran's war of words was "not good for risk sentiment".
