On April 20, European travel and leisure stocks are plummeting due to rising fuel costs and increased geopolitical risk, contributing to a general risk aversion sentiment in European stock markets. The Brent crude oil has increased by over 5% amid fears that the ceasefire between the United States and Iran may collapse after the US seized an Iranian cargo ship, causing major disruptions in the Strait of Hormuz.
Airline companies such as Lufthansa, EasyJet, ICAG, Ryanair, Air France KLM, Wizz Air have seen their stocks drop by approximately 3 to 5%. Travel companies like TUI, Carnival have also experienced declines of 3.8% and 2.8% respectively. The sector is deemed vulnerable to a sustained increase in oil prices, with operators expecting margin pressure and travel disruptions.
The STOXX Travel & Leisure index is the weakest among European sectors, down by 2.1%, leading cumulative losses since the beginning of the year to exceed 5%.
