Jets ETF sinks toward a 1-year low as Israel-Hamas war fuels profit worries

A run-up in crude oil prices
CL.1,
+1.78%,
which stoked concerns over rising fuel costs, added to investor concerns.

United’s stock
UAL,
-8.46%
sank 7.9%, enough to pace the S&P 500’s decliners, after the air carrier beat third-quarter profit expectations but provided a downbeat fourth-quarter outlook, citing flight suspensions to Tel Aviv. The longer that the Israel-Hamas war lasts, the lower the expected profit.

The stock was also headed to one-year closing low and was in danger of the biggest one-day selloff in 16 months.

TD Cowen’s Helane Becker is assuming the worst for United’s fourth quarter.

“Given the projections that this will be a long war, we are looking at the lower end of the forecast range and assuming no service until at least year-end,” Becker wrote in a note to clients.

Read: Blast kills hundreds at Gaza hospital; Hamas and Israel trade blame.

Of the legacy U.S. international airlines, Raymond James analyst Savanthi Syth said United had the most capacity exposure to Tel Aviv, at 1.8% of its total.

Delta Air Lines Inc.
DAL,
-4.15%
was next at 1.2% and American Airlines Group Inc.
AAL,
-4.94%
was at 0.4%. Meanwhile, Delta’s stock slumped 4.2% toward a five-month low and American shares dropped 4.9% toward a three-year low.

On Oct. 12, Delta President Glen Hauenstein said during the company’s post-earnings conference call with analysts that its full-year guidance can be met even with the worst-case scenario in Israel.

Meanwhile, American is expected to report results on Thursday.

Among stocks of other air carriers, JetBlue Airways Corp.’s
JBLU,
-3.56%
stock fell 4.1%; Southwest Airlines Co.’s
LUV,
-3.30%
gave up 3.0%; Hawaiian Airlines parent Hawaiian Holdings Inc.’s
HA,
-7.70%
declined 6.3%; Alaska Air Group Inc.’s as down 4.2% and Spirit Airlines Inc.
SAVE,
-0.48%
shares slipped 0.4%.