Qantas Airways Ltd (ASX: QAN) shares have taken a sharp hit recently.
After ending yesterday’s session at $8.43, the airline’s shares are now down roughly 33% from their 52-week high of $12.62.
Most of that decline has come quickly, with the stock falling more than 20% since 20 February.
Image source: Getty Images
What’s behind the sell-off?
The main catalyst has been surging oil prices.
Escalating tensions in the Middle East and the effective closure of the Strait of Hormuz have sent energy markets higher. That’s a direct headwind for airlines, where fuel is one of the biggest costs.
There are also concerns that the conflict could impact international travel demand, particularly given the importance of hubs like the UAE and Qatar.
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