The report highlights airlines like Delta and United down over 4% in pre-market trading due to the impact of higher oil prices. Jet fuel is in short supply in Europe, raising operational costs. Airlines are direct, price-sensitive consumers of refined products (jet fuel). A sharp rise in their primary input cost squeezes margins immediately. The ability to pass these costs to consumers via higher ticket prices is uncertain and could dampen demand. The sector is a direct casualty of the energy shock, facing immediate and severe earnings pressure with limited near-term hedging options. A swift resolution to the conflict leading to a rapid normalization of jet fuel supply and prices.