US airline stocks plummet after Trump wins WTO approval for tariffs on aircraft parts

• US airline stocks plummeted Wednesday after the World Trade Organization approved President Trump's $7.5 billion worth of proposed tariffs on the European Union. The duties will affect airplane parts and luxury goods.
• The approval is the largest in the WTO's 24-year history, and further escalates the trade conflict between the bloc and the US.
• United Airlines and American Airlines both fell roughly 6%. JetBlue fared better than its peers, dropping about 2.8%.
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Major US airlines saw their stocks tumble Wednesday after President Trump won approval from the World Trade Organization for $7.5 billion worth of tariffs on EU-based airplane parts and luxury goods.

The approval is the largest in the WTO's 24-year history, nearly doubling the previous record from 2002. The tariffs affect the decades-long conflict between US-based Boeing and EU-based Airbus, with both companies accused of illegally using government funds to compete with the other.

Here are the major US airlines hit by the announcement and how much they've fallen as of 1:30 p.m. ET:

• Alaska Air Group (ALK): down 4.6%
• American Airlines (AAL): down 5%
• Delta Air Lines (DAL): down 6.1%
• JetBlue Airways (JBLU): down 2.9%
• Southwest Airlines (LUV): down 3.2%
• Spirit Airlines (SAVE): down 4.4%
• United Airlines (UAL): down 5.7%

Read more: US factory activity unexpectedly hits 10-year low as Trump's trade war persists

Boeing fell as much as 2.9% on the news, and Airbus dropped as much as 2.5%.

The tariff announcement furthers Trump's trade conflict with the EU. The President already issued a 25% duty on steel from the bloc in March 2018, and is threatening billions of dollars worth of tariffs on European cars.

The WTO ruling also permits tariffs on luxury goods from the EU including linen, cheese and swordfish. The organization is scheduled to rule on proposed tariffs from the EU early next year.

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