Delta Air Lines Stock Is Down 8% This Week: What's Going On?

Delta Air Lines, Inc. DAL shares are down 2.00% to $47.43 this week amid growing concerns about the escalating conflict in the Middle East.

An emergency session convened by the United Nations Security Council on Wednesday in New York, called to address the situation between Israel, Lebanon and Iran, has raised investor fears over a potential all-out war in the region. The broader geopolitical tension has already begun to affect global markets, particularly sectors tied to travel and fuel costs.

Additionally, the aftermath of Hurricane Helene continues to affect major areas in the southeastern U.S., including Georgia and the Carolinas, where Delta has significant operations.

Severe weather in the region has led to widespread flight cancellations, delays and rerouting. This not only affects immediate revenue from ticket sales but also increases operational costs for handling stranded passengers, rescheduling flights and maintaining crew schedules.

What To Know: The emergency meeting, called in response to Iran’s missile attack on Israel, was marked by Israeli Ambassador Danny Danon's warning of Iran's aggression. Danon labeled the missile strike as the "largest" in Israel's history, and called for significant consequences against Iran, adding that “Iran must pay a heavy price for this attack.”

The missile strikes, paired with ground operations in Lebanon and Israel’s ongoing conflict with Hezbollah militants, have heightened the risk of a broader regional war.

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The potential for escalation has led to oil prices spiking sharply, with Brent crude and WTI both seeing significant gains as investors brace for potential disruptions in the global oil supply. Rising fuel costs are a significant concern for airlines like Delta, which rely heavily on stable energy prices to manage operating expenses.

Jet fuel, a substantial portion of Delta’s operating costs, has already become more expensive, with the likelihood of further increases if tensions in the Middle East continue to escalate.

What Else: As a global carrier, Delta Air Lines operates flights to and from multiple international destinations, including Europe and Asia. With the Middle East being a key transit hub and home to major air traffic routes, heightened conflict in the region raises several risks for Delta’s operations.

First, increased volatility in oil markets could drive fuel costs higher, squeezing profit margins. Delta, which reported substantial fuel costs in its previous quarters, will face mounting pressure to manage this expense if oil prices continue their upward trajectory.

Additionally, the ongoing uncertainty around airspace safety in the Middle East could impact Delta's long-haul international routes. In similar past conflicts, airlines have had to reroute flights or suspend services to avoid war zones, potentially leading to reduced capacity, delays and increased operational complexity.

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How To Buy DAL Stock

By now you're likely curious about how to participate in the market for Delta Air Lines – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Delta Air Lines, which is trading at $47.55 as of publishing time, $100 would buy you 2.1 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, DAL has a 52-week high of $53.86 and a 52-week low of $30.60.