Airline share prices have fallen sharply since joint US-Israeli action against Iran began on February 28, 2026, as investors priced in higher jet fuel costs and disrupted networks across the Middle East. The market has punished carriers with weaker balance sheets or less network flexibility during periods of uncertainty. JetBlue and Alaska Air Group fell more than the larger network airlines in the early days of the conflict, while Qantas dropped over 10% at one point. As oil prices continue to climb, it could add additional cost pressure for airlines, while carriers also face the risk of broader disruption from airspace closures, schedule adjustments, and softer demand.