Travel stocks sink after thousands of flights grounded

Airline and travel stocks fell on Monday after airspace closures in the Middle East forced carriers to cancel thousands of flights, disrupting travel as far as Brazil and the Philippines.

Cruise lines stocks also fell sharply. Royal Caribbean Cruises falls 3% and Karnaval Inc. More than 7% loss.

Norwegian Cruise Line HoldingsThe stock fell 10% after its earnings disappointed investors. Elliott Investment Management said last month it owns more than a 10% stake in the company and is seeking changes. New CEO John Chidsey told analysts that “our strategy is sound, our execution and coordination are not good, and a culture of accountability is essential and essential going forward.”

Oil prices have also risen, potentially increasing airlines’ biggest cost after labor. Flights through the Middle East, including destinations such as Tel Aviv and Dubai, have been suspended.

United AirlinesThe airline with the most international visibility among U.S. carriers fell nearly 3%. Services to Tel Aviv, Israel, one of the airline’s most profitable routes, were suspended, but airlines were also forced to pause flights to Dubai in the United Arab Emirates, one of the world’s busiest airport hubs. Dubai is also the home base of Emirates airline.

shares American Airlines lost 4% Delta Airlines It fell 2%.

More than 11,000 Middle East flights have been canceled since this weekend’s U.S.-Israeli attacks, according to aviation data firm Cirium.

International travel has been a bright spot in the travel industry. International air travel demand rose 5.9% in January from a year earlier, but domestic flight demand remained nearly flat, airline industry group International Air Transport Association said in a report on Monday.

— CNBC’s Contessa Brewer contributed to this report.