United Airlines Holdings Inc UAL shares are trading lower by 5.27% to $39.62 Monday afternoon. Shares of airline stocks are trading lower amid the Israel-Hamas conflict, which has caused travel uncertainty and lead to U.S. airlines suspending flights to Israel.
In response to rocket attacks launched by Hamas, the Palestinian militant organization that controls the Gaza Strip, U.S. airlines have temporarily suspended their flight operations to Israel. These attacks have led to a significant number of casualties, with over 1,100 individuals affected, including 700 Israelis, and more than 2,000 reported injuries.
Additionally, there are reports of individuals being held captive in the Gaza region as a result of these hostilities.
See Also: What Israel's War With Hamas Means For Gold And Other Safe Haven Assets
U.S. airlines suspending flights to Israel due to security concerns can have a direct negative impact on their financial performance. The suspension of flights to a particular region reduces revenue from that route and may also disrupt the overall flight schedule, affecting other routes as well.
Geopolitical conflicts can also lead to an increase in oil prices, as they can disrupt oil supplies or create concerns about oil production in certain regions. Since fuel is a significant operating cost for airlines, higher fuel prices can eat into their profit margins.
See Also: Goldman Sachs Bullish On Crude Oil With Israel, Hamas At War
According to data from Benzinga Pro, United Airlines has a 52-week high of $58.23 and a 52-week low of $32.71.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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