Shares of Delta Air Lines (DAL), United Airlines Holdings (UAL), and Spirit Airlines (SAVE) are experiencing a downward trend on Tuesday, fueled by heightened geopolitical tensions. These tensions stem from reports suggesting that Iran might be preparing a missile attack on Israel within the next 12 hours. According to Bloomberg, the U.S. has intelligence indicating this potential attack and is actively supporting Israel in its defense preparations.
These preparations include deploying additional military units to the region. Israel, in turn, is preparing its security infrastructure for a possible attack and relocating some of its military operations to Southern Lebanon. This potential attack follows a recent Israeli airstrike that resulted in the death of Hezbollah leader Hassan Nasrallah.
The possibility of a missile attack on Israel could have a significant impact on travel demand for services like airlines and hotels. The increased security concerns and potential instability in the region may deter travelers, leading to a decrease in bookings and ultimately affecting airline revenues.
As of this writing, Spirit shares are down 2.25% at 5 cents, Delta stock has fallen 1.35% to 68 cents, and United stock is down .72% at 41 cents per share, according to data from Benzinga Pro.
This unfolding situation underscores the interconnected nature of global events and their impact on various sectors, including the travel industry. Airlines are closely monitoring the situation, and it remains to be seen how these geopolitical tensions will ultimately affect their operations and financial performance.
