British Airways-owner International Consolidated Airlines Group (ICAGY) and Air France-KLM (AFLYY) traded lower Thursday after reports the Trump administration will likely expand the laptop to include some European countries.
Department of Homeland Security officials are said to be planning to meet with airline industry officials Thursday to discuss security issues, including the safety of storing a large number of lithium batteries in the hold of an aircraft.
In March, the U.S. announced laptop restrictions on flights originating from 10 airports including in the UAE, Saudi Arabia, Qatar and Turkey because of fears that a concealed bomb could be installed in electronic devices taken onto aircraft.
However, Thursday's declines come amid a surge in European airlines stocks, with the benchmark Stoxx Europe TMI Airlines rising more than 29% so far this year.
IAG shares fell 0.2% in the first 90 minutes of trading in London to change hands at 606 pence each, but have still gained more than 24% over the past three months. Rival Air France KLM was marked down 0.8% lower at €8.88 each but has gained a staggering 75% over the past three months. Germany's Deutsche Lufthansa AG (DLAKY) was makred 0.12% higher at €17.17 and has gained 35.9% over three months.
European regulators have warned that placing a large number of devices in the hold on long-haul flights could compromise safety by increasing the risk of fire from poorly deactivated lithium-ion batteries.