March 21, 2025. The recent closure of Heathrow Airport due to a power outage caused by a fire has led to a notable decline in the stock prices of logistics and travel companies. The travel and leisure sector saw a 2.1% drop, significantly impacting airlines. International Airlines Group (IAG), the parent company of British Airways, dropped by 3.1%, while other carriers, including Lufthansa, Air France-KLM, and easyJet, experienced declines of 1.2% to 3.1%. FedEx (FDX.N) fell 10.9%, while peer UPS (UPS.N) lost 3.3%.

The closure of Heathrow disrupted over 1,350 flights, affecting hundreds of thousands of passengers. Airlines such as United and SAS had to cancel flights and offer travel waivers, further affecting their market performance. This disruption has raised concerns about the stability of critical infrastructure and sparked calls for a thorough investigation into the incident.

Travel-related stocks also suffered, with companies like Whitbread, which owns Premier Inn, seeing significant stock declines. The broader market was also affected, with the pan-European STOXX 600 index falling by 0.5%, largely driven by the downturn in the travel sector.

The incident highlights the vulnerability of logistics and travel companies to infrastructure issues. Such disruptions can have immediate financial consequences and create long-term challenges in restoring operational stability and maintaining investor confidence.

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