Travel stocks sink after thousands of flights grounded

Airline and travel stocks fell Monday after airspace closures throughout the Middle East forced carriers to cancel thousands of flights, disrupting trips as far as Brazil and the Philippines. Oil prices also spiked, driving up airlines’ biggest cost after labor.

United Airlines, which has the most international exposure of the U.S. carriers, was down 6% in premarket trading. Service to Tel Aviv, Israel, one of the airline’s most profitable routes, was halted, but airlines were also was forced to pause flights to Dubai, in the United Arab Emirates, one of the busiest airport hubs in the world. Dubai is also a home base for airline Emirates.

Shares of Delta Air Lines and American Airlines were also each off about 6%. Flights through the Middle East were grounded including to destinations like Tel Aviv.

Another 1,560 flights were canceled in the Middle East on Monday, aviation data firm Cirium said.

Other carriers like Southwest Airlines, which is more U.S.-focused, had smaller stock moves, but shares still fell as investors assessed a run-up in oil prices.

Hotel chains also fell, with Marriott International and Hilton Worldwide Holdings down. And shares of cruise lines were down, with Royal Caribbean Cruises stock down 6% and Carnival Corp. stock down 7%.

Norwegian Cruise Line Holdings, which had a 7% stock drop in premarket trading, said on an earnings call Monday that it is 51% hedged for its fuel costs this year and 27% for next year.

International travel has been a bright spot in the travel sector. In January, international air travel demand jumped 5.9% from a year ago while domestic flight demand was nearly flat, the International Air Transport Association, an airline industry group, said in a report on Monday.

— CNBC’s Contessa Brewer contributed to this report.