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Shares in European airlines drop after report claims Russia considering limiting airspace

Shares in European airlines are falling on a report that Russia is considering cutting off the country's airspace for European flights to Asia.

Russian business daily Vedomosti quotes anonymous Russian officials as saying this would be a response to the recent sanctions the EU imposed on Moscow. The move would force costly detours for European airlines.

The officials say the idea of limiting or cutting off the airspace is being discussed but no formal decision has been made, according to the newspaper.

Shares in Air France-KLM and IAG, the owner of British Airways, were both down 3.8 percent on Tuesday.

Russian carrier Aeroflot saw its shares tumble almost 6 percent. Foreign airlines pay Aeroflot for the right to use Russian airspace.