What Happened?
Shares of global airline Delta Air Lines (NYSE: DAL) fell 6.4% in the afternoon session after a surge in crude oil prices sparked concerns about rising jet fuel costs, which could cut into the airline's profits.
The airline sector retreated after WTI crude oil jumped to a seven-month high. This spike in oil futures followed news that nuclear talks between the U.S. and Iran ended with no concrete agreements. Jet fuel is a major operating expense for carriers, so higher prices directly threatened to reduce their profitability. The negative sentiment was felt across the industry, with peers like United Airlines and American Airlines also experiencing significant stock price drops.
The shares closed the day at $65.71, down 6.8% from previous close.
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What Is The Market Telling Us
Delta’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock dropped 3.7% on the news that the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.
Delta is down 4.9% since the beginning of the year, and at $65.68 per share, it is trading 12.8% below its 52-week high of $75.35 from February 2026. Investors who bought $1,000 worth of Delta’s shares 5 years ago would now be looking at an investment worth $1,367.
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