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Investing.com -- European airline stocks dropped Thursday as the sector came under pressure from weak airfare data in the United States and rising fuel costs.
Major carriers saw significant declines, with TUI (LON:TUIT) dropping 5%, Deutsche Lufthansa AG (ETR:LHAG) down over 3%, IAG (LON:ICAG) falling about 3%, and easyJet (LON:EZJ) declining 2.7%.
Ryanair (LON:0RYA) shares decreased by 0.5%. Air France KLM SA (EPA:AIRF) fell 5.4% and Wizz Air (LON:WIZZ) down 3.2%.
The European selloff followed sharp drops in U.S. airline stocks on Wednesday after data revealed that airline fares in the United States fell 2.7% in May compared to April.
American Airlines (NASDAQ:AAL) led the U.S. losses on Wednesday, with United Airlines Holdings Inc (NASDAQ:UAL), Delta Air Lines Inc (NYSE:DAL) (NYSE:DAL), and Allegiant Travel (NASDAQ:ALGT) also falling.
Adding to the sector’s challenges, crude oil prices have risen over a two-day period, potentially increasing jet fuel costs for airlines and further pressuring their profit margins.