Companies tied to tourism activities faced renewed pressure as violence surged in the Middle East. Shares of IAG led losses, dropping as much as 4.45% at market open on Monday, with Melia and Amadeus sliding close to 2%. Aena, the operator of Spanish airports, also shed value, down about 1.22%. These declines echo a pattern seen when tourism activity ebbs and flows, and they come after a rebound in the previous year as travel resumed. European major airlines also fell early in trading, contributing to a more than 3% rise in oil prices and prompting numerous flight cancellations to Tel Aviv. Air France-KLM fell by 4.38% to 11.92 euros a share, while the Lufthansa Group dropped about 3.12% to 7.17 euros per share.
Aviation safety authorities in the European Union have issued guidance regarding airspace over the region. A notice urged operators to perform robust risk assessments and maintain a high level of contingency planning, with readiness to follow directions from Israeli authorities on short notice.
The Islamic Resistance Movement, Hamas, claimed responsibility for an attack on Ben Gurion International Airport in Lod, southeast of Tel Aviv, as part of the unfolding hostilities this weekend. At the tourism level, flights to Tel Aviv, Israel’s second most visited city, were canceled, creating uncertainty for both carriers and travelers.
Gaza attack
In response to the Hamas actions, the Israeli military launched operations in Gaza. The region has endured sustained bombardment from Israeli aircraft and drones, driving a dramatic humanitarian crisis as residents endure a second night of strikes in a landscape already scarred by conflict. Palestinian officials report hundreds of fatalities, including children, with thousands displaced.
The army confirmed a major mobilization, signaling a focus on the Gaza border. Reports from Palestinian authorities indicate that hundreds of people have died and that tens of thousands have fled their homes. Dozens of families watched as their residences were reduced to rubble in moments. Eyewitness accounts described families, including women and children, left without shelter and uncertain about where to turn. In the face of this upheaval, many sought safety in UN facilities, while residents in other areas attempted to find makeshift refuge as the crisis intensified.
Humanitarian agencies have warned that the number of people displaced within Gaza is rising rapidly, with shelters operated by UNRWA becoming critical centers for those seeking protection. The situation remains fluid as aid organizations strive to deliver relief under dangerous conditions, and international observers monitor developments that impact regional stability, travel safety, and economic activity across the tourism sector.