It sent shares in British Airways-owner IAG tumbling 7.7 per cent, or 11.6p, to 140p – wiping nearly £580million off the company's value.
Budget airline Easyjet plunged 6.7 per cent, or 52p, to 728.6p, with rival Ryanair falling 4.1 per cent, or €0.61, to €14.26. Wizz Air fell 4.4p, or 186p, to 4092p.
Engine-maker Rolls-Royce, which relies on the airline industry for business, also fell 4.8 per cent, or 4.95p, to 98p.
Stock Watch - Angus Energy
Shares in Angus Energy rose as the firm moved a step closer to resuming production at a dormant site.
It wants to restart operations at the Saltfleetby onshore gas field, off the coast of Lincolnshire, which closed under prior owners in 2017.