British Airways' parent company International Consolidated Airlines Group SA (LSE:IAG) fell sharply, along with other airlines, following the attacks on Israel over the weekend.
IAG was down 3.4%, while Wizz Air Holdings PLC (AIM:WIZZ) slid 4.7% and easyJet PLC declined 4.0% as the oil price jumped and flights were disrupted.
Several airlines have suspended flight services with Tel Aviv until safety conditions improve, while the rising oil price will also push up costs for airlines.
Wizz Air said flights are on hold until further notice.
A spokesperson said: “We are continuing to monitor the situation closely and are in touch with the relevant authorities.”
On Sunday, US air carriers United Airlines, Delta Air Lines and American Airlines said they had suspended direct flights, as did Air France and Finland’s Finnair.