American Airlines Group Inc AAL shares are trading lower by 4.98% to $12.12 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.
U.S. airlines have suspended flights to Israel in response to rocket attacks by Hamas, the Palestinian militant organization in control of the Gaza Strip, resulting in casualties exceeding 1,100 people, including 700 Israelis, with over 2,000 injuries and numerous individuals held captive in Gaza.
See Also: What Israel's War With Hamas Means For Gold And Other Safe Haven Assets
The Middle East is a major oil-producing region, and geopolitical tensions there can lead to oil price volatility. American Airlines, like other carriers, is sensitive to changes in fuel costs. A sharp increase in oil prices due to conflict-related supply disruptions can raise the airline's operating expenses.
American Airlines may incur additional costs related to the conflict. These can include expenses associated with rerouting flights, accommodating affected passengers, and maintaining security measures. These increased costs can reduce the company's profitability.
See Also: Goldman Sachs Bullish On Crude Oil With Israel, Hamas At War
According to data from Benzinga Pro, AAL has a 52-week high of $19.08 and a 52-week low of $11.79.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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