The airline industry is facing its worst crisis since the pandemic, with Middle East conflict grounding flights and wiping more than $50 billion off the value of major carriers. Jet fuel prices have doubled since US and Israeli attacks on Iran, accounting for a third of airlines' costs and forcing steep fare increases.

Executives warn that the crisis extends beyond fuel costs, with Gulf hub airports experiencing severe disruption and tourism collapse. The 20 largest publicly listed airlines have lost about $53 billion in market capitalisation since the war began, according to Financial Times calculations. Wizz Air has become the most shorted company on the FTSE 100.

Airlines are drawing up contingency plans for potential fuel shortages, with Air France-KLM cutting Asian services and cargo operations overwhelmed. While easyJet's CEO Kenton Jarvis expects share prices to rebound quickly if ceasefires are announced, industry leaders acknowledge the severity of the crisis. Lufthansa's Carsten Spohr notes that with average profits of just €10 per passenger, absorbing additional fuel costs is impossible.