The move to ground flights to the popular Egyptian resort of Sharm el-Sheikh sent shares in the biggest UK tour operators sinking.
Thomas Cook (LON:TCG) saw shares plunge almost 7% to 112.7p on the move, while TUI AG (LON:TUI) lost 0.78% to 1,151p.
The UK government moved to action, on Wednesday, and has held another emergency Cobra meeting today , suspending flights from the resort, saying it may have been an explosive that brought down the Russian passenger jet.
Flight 9268 crashed on Saturday, October 31, after breaking apart in midair, killing all 224 passengers.
It was flying to St . Petersburg in Russia from Sharm el-Sheikh.
Reportedly, the latest US intelligence suggests the disaster was the result of a bomb planted on board.
Thomas Cook and TUI have both cancelled all flights from the UK to Sharm until November 12.
The move leaves those still in the resort in a chaotic position and reportedly 20,000 Britons are stranded in Egypt, and who will need evacuating.
There were 16 flights due to leave Sharm el-Sheikh today, each with 200 on board.
Sharm el-Sheikh is a major tourist attraction, offering a year-round dry climate and long stretches of natural beaches.
It is also a congress centre, having hosted ministerial meetings, world bank meetings, and Arab League meetings.
City broker Panmure Gordon said the cancellation to Sharm el-Sheikh could result in a £15mln hit to Thomas Cook profits.
The tour operator was earlier accused this week of putting costs before customers in a report following the deaths of two children on the Greek island of Corfu poisoned by carbon monoxide.
Former Sainsbury's boss, Justin King, carried out a year-long review into Thomas Cook’s customer health and safety procedures and crisis management.