Airline stocks in full retreat

Chris Beauchamp, Chief Market Analyst at IG: “The widening war in the Middle East continues to be a catastrophe for the international flag carriers, whose key business routes to the Middle East are now all but off limits until the conflict winds down. Budget airlines have been less affected for the moment, but with the spectre of inflation rising once more consumers are going to start worrying about holiday spending in coming months. If the conflict ends in a reasonable time frame then the hit to share prices will be temporary, but if damage to oil infrastructure intensifies and prices go much further then it will take much more time before earnings recover.”