Delta Air Lines Shares Plunge 22% as Jet Fuel Hits $3.88
Delta Air Lines shares tumbled 22% in the last month as geopolitical tensions in the Middle East have spiked jet fuel costs to $3.88 per gallon and forced thousands of cancellations. Several brokers including Weiss downgraded their ratings and cut price targets for Delta.
1. Market Impact & Share Decline
Delta Air Lines shares declined 22% over the past month as escalating conflict in the Middle East led to thousands of commercial flight cancellations, increased operational costs, and eroded revenue potential across major carriers.
2. Jet Fuel Price Surge
The Argus US Jet Fuel Index climbed from $2.50 to $3.88 per gallon within a week, intensifying pressure on airlines' fuel expense line and widening the crude-to-jet-fuel price differential amid broader oil-market volatility.
3. Broker Downgrades & Outlook
Since the conflict began, Weiss and two other firms have downgraded Delta to Hold and trimmed price targets, while investors weigh whether current share levels present a buying opportunity or signal further downside if tensions persist.