Delta Air Lines Shares Slump 6.4% as Crude Oil Hits Seven-Month High
Delta Air Lines shares dropped 6.4% after West Texas Intermediate crude oil futures reached a seven-month high, stoking jet fuel cost concerns that erode profit margins. The carrier also committed to purchasing 34 additional Airbus A321neo jets to enhance fuel efficiency and expand premium seating capacity.
1. Fuel Price Impact
West Texas Intermediate crude oil futures climbed to a seven-month high after U.S. and Iran nuclear talks failed to produce agreements, driving jet fuel price expectations higher. The surge triggered a 6.4% intraday sell-off in Delta Air Lines shares as investors weighed rising operating expenses.
2. Share Price Movement
Shares closed the session at $65.71, down 6.8% from the prior close, marking one of 18 moves greater than 5% in the past year. The stock trades 12.8% below its 52-week peak of $75.35 and is 4.9% lower year-to-date.
3. Fleet Renewal Plan
Delta also confirmed an order for 34 additional Airbus A321neo aircraft to modernize its fleet with more fuel-efficient models. The new jets will increase premium seating offerings and reduce per-flight fuel consumption over older narrow-body planes.