The sell-off came as a leading European Central Bank policymaker warned the “terrible” attacks could hit investor confidence.
“It can compound all the problems that we were already facing,” said ECB executive member Vitor Constancio.
Tour operator TUI, already reeling from the Tunisia attack in June when 38 holidaymakers were killed, sank 47p to 1087p or 4% today while rival Thomas Cook slid 1.6p to 105.4p or 1.5%.
Eurodisney, whose Disneyland Paris park will stay shut until Wednesday, saw shares slip two cents to €1.22 or 1.6%.
"In the short term people will ask, ‘do I really want to go to Paris for Christmas?’”
<p>Panmure Gordon analyst Gert Zonneveld</p>
Luxury goods stocks such as Kering, owner of brands including Gucci, also suffered, dropping €2.05 to €163.25.
But airlines and travel stocks took the worst damage, with Channel Tunnel operator Eurotunnel sinking 50 cents to €11.82p, or 4%.
Airlines were also hard hit, and easyJet chief Carolyn McCall saw its shares down 22p to 1768p or 1.2%, Ryanair was off 23 cents to €14.13 and British Airways owner IAG slipped back 13.5p to 579p or 2%.
Panmure Gordon transport analyst Gert Zonneveld said travel to and from Paris accounted for around 11% of easyJet’s seats and 4% of Ryanair’s, although IAG was less likely to be affected unless the attacks led to a corporate crackdown on flying.
Zonneveld said: “What has happened in the past is that initially there is a sharp drop in bookings as people stop flying. Then the airlines respond by aggressively discounting to get people to change their minds.
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“There won’t be a lasting impact, but in the short term people will ask, ‘do I really want to go to Paris for Christmas?’”
But oil shares benefitted as French airstrikes in Syria increased the threat of instability in the Middle East and pushed up oil prices.
