Which Travel Stocks are Sinking Most on Monday?

Shares in many of the world’s leading travel companies sank on Monday, compounding last week’s heavy losses. Markets in Asia, the Middle East, and Europe dropped sharply, with the Hang Seng index in Hong Kong closing down more than 13% – its worst one-day fall since the 1997 Asian financial crisis.

Investors continue to be spooked by the introduction of worldwide tariffs on goods entering the United States. Wall Street is yet to open, however U.S. futures are sharply down, indicating that shares will fall when trading officially begins at 9:30am ET.

With local insights from around the world, Skift’s global team of reporters help make sense of a turbulent day for many of the travel industry’s biggest names:

A Brutal Day for Asian Travel Stocks

Asian equity markets saw a broad and severe sell-off on Monday. Investor sentiment was rattled by growing concerns over slowing global growth, rising geopolitical tensions, and regulatory pressures. 

Hong Kong’s Hang Seng index led the rout, falling 13.2% by the close of Monday trading. For context, the index’s largest slump during the 2007-08 global financial crisis was a 12.7% drop. Mainland China and the Hong Kong markets were closed on Friday for a public holiday.

The steep drop was driven largely by a collapse in tech and e-commerce shares, with Alibaba Group, parent of travel platform Fliggy, falling 18%. Trip.com also fell nearly 16% on Monday.

The sell-off rippled across the region, with all 14 major Asia-Pacific stock benchmarks ending the day lower. Of those, 11 closed at fresh 52-week lows, highlighting the breadth of the market retreat. 

Japan’s Nikkei 225 fell 7%, South Korea’s Kospi lost 5%, and Singapore’s Straits Times index dropped 8%, all reflecting heightened risk aversion among global investors. In mainland China, equities were similarly battered.

The travel and tourism sector, closely tied to consumer sentiment and economic reopening prospects, also came under pressure. In Thailand, tourism stocks declined 2.8%, slightly underperforming the broader market’s 3.15% fall.

India’s tourism and travel-related shares mirrored the regional trend. According to the Nifty India Tourism Index, as of 2:55pm India time, the sector was down 3%, compared to a 3.8% drop in the overall market.

Individual names saw sizable losses: IndiGo Airlines fell nearly 2.5%, Taj-parent Indian Hotels dropped 6.79%, travel tech firm TBO was down 6.7%, and EIH Limited, parent company of The Oberoi Group, lost 4.62%. Notably bucking the trend was GMR Airports, which rose 1.16%, likely buoyed by its recent announcement of increased user development fees.

Reporting by Peden Bhutia in Delhi, India

A Middle Eastern Perspective

Dubai’s main index fell 6% at the open, with Emaar Properties — owner of hotel brands Address, Vida, and Palace — down 9%. Abu Dhabi’s benchmark dropped 4%. The declines followed a bruising session on Sunday in Gulf markets that operate Sunday to Thursday. 

Saudi Arabia’s Tadawul index fell 6.8% on Sunday and dropped another 3% Monday. Meanwhile, the Qatar Stock Exchange declined over 4% Sunday and a further 2% Monday, while Boursa Kuwait lost more than 5% Sunday and continued with a 1.5% loss on Monday.

Travel and tourism-linked stocks are among those under pressure. Abu Dhabi National Hotels fell 7.2% as of 12:30pm Dubai time Monday, while Aldar Properties — a major developer in Abu Dhabi with exposure to real estate, entertainment, and tourism — was down 6.2%.

There are far fewer publicly-trading Middle Eastern travel companies than in the U.S., but the price of oil is a vital indicator to understand the health of the region. The Middle East relies on oil revenue to fund many tourism projects. 

Shares in Saudi Aramco, the world’s most valuable oil exporter, sank more than 5% Sunday and continued to slide Monday. Crude exports remain the backbone of public spending and economic diversification efforts across the Gulf, including large-scale investments in hospitality, and tourism development.

Saudi Arabia alone has seen more than $226 billion in market value erased since Sunday, with Saudi Aramco accounting for more than $93 billion of the decline.

Reporting by Josh Corder in Dubai, UAE

European Airlines Feel the Pain

Many of Europe’s largest airlines also saw sharp falls extend into the new working week. As of 9:30am London time on Monday, IAG – the parent company of British Airways, Iberia, and Aer Lingus – was down more than 10% on the day.

IAG is more exposed to the highs and lows of the North American market than any other European airline. Along with its joint business partners, the group operates around 150 flights every day across the North Atlantic. IAG alone claims a 58% capacity share between London and the United States. 

Deutsche Lufthansa and Air France-KLM, Europe’s other two airline supergroups, both sank more than 7% on Monday morning.

Low-cost carriers were not immune to the stock market sell-off. Ryanair Holdings was down 4.3%, easyJet slipped 4.9%, and Wizz Air dropped 5.3% in the first hour of trading on Monday. The budget airline business model means the companies have reduced exposure to markets outside of Europe, and no transatlantic flights. 

In times of economic uncertainty, low-cost operators have typically fared better than their full-service, long-haul counterparts. However, expect all airlines to be hit if a trade war causes aircraft to become more expensive, and discretionary leisure travel dries up.

Reporting by Gordon Smith in Lisbon, Portugal

Sharp Falls for European Hospitality Giants

New U.S. tariffs have cast a shadow over the European hotel industry, triggering drops in the stock values of major players. 

Among the hardest hit are two of the continent’s largest and most influential hotel groups: French multinational Accor and British firm IHG (InterContinental Hotels Group). 

Accor, boasting a vast portfolio of brands spanning from budget to luxury, saw its stock price drop 5.87% as of 10am Paris time. Accor’s exposure to the European market means any downturn in international travel sentiment is likely to be felt across its diverse brand offerings, from Sofitel and Pullman to Novotel and Ibis.

Last week, Accor Group CEO Sébastien Bazin said summer bookings from Europe to the United States have fallen by 25%. Bazin cited a “bad buzz” after recent reports of visitors being detained by U.S. border agents.

Similarly, IHG, another powerhouse in the European hospitality landscape with well-known brands like InterContinental, Holiday Inn, and Crowne Plaza, has experienced a fall of 4.27% as of 9:45am London time.

Beyond Accor and IHG, other significant European hotel companies are also feeling the pressure. 

UK-based Whitbread, best-known for its Premier Inn hotel chain, was down more than 3% as of 9:45am London time, while the Dutch PPHE Hotel Group, with its Park Plaza and art’otel brands, reported a fall of more than 5.62%.

As of 11am local time, Spain’s Meliá Hotels International was down almost 5% while Sweden-based Scandic Hotels recorded a fall of more than 5.5%.

Reporting by Luke Martin in Manchester, UK

All Eyes on Wall Street

As of Monday morning, U.S. futures are sharply down, indicating that Wall Street will fall when U.S. trading begins. Recent March lows saw the S&P 500 down 5%, while our ST 200 Travel Stock index is down 10%.

Despite the backdrop of extreme economic uncertainty, companies are adjusting forecasts but do not (yet) appear to be in panic mode. This could reflect pockets of resilience within the industry, with many consumers continuing to prioritize travel and booking vacations. 

However, the Trump administration’s sweeping new tariffs have raised the risk of recession. 

As a result, Skift Research has lowered its outlook for global travel, now forecasting between 2% to 5% travel industry growth in 2025, down from our forecast at the start of the year for 6% to 9% growth.

For further insights and data points, check out the Skift Travel 200.

Additional reporting by Jade Wilson in Dublin, Ireland