According to FlightRadar24 data, increasing tensions in the Middle East have caused havoc in the aviation industry, with international airlines canceling or diverting flights on Wednesday and regional airports, including those in Kuwait, Israel, and Lebanon, experiencing lengthy delays.
Shares in the travel and airline industries were also hit by worries that the violence will disrupt travel, with shares in TUI, the biggest travel operator in Europe, plunging almost 5% on the day and in Lufthansa falling 4.4%.
According to Barclays analyst Andrew Lobbenberg, “there was a weakening of demand for travel across the board in Europe at the outbreak of the Ukraine conflict and the Israel-Gaza conflict last year, which eased after a couple of weeks.”
In retaliation for Israel’s campaign, Iran launched its biggest missile attack against Israel on Tuesday.
