Why Delta Air Lines Stock Hit A New 52-Week High Today

Delta Air Lines, Inc. DAL shares rallied 3.2% to $55.89 Monday afternoon following a sharp decline in crude oil prices, which dropped more than 6% amid escalating tensions in the Middle East.

As one of the largest U.S. carriers, Delta stands to benefit significantly from lower fuel prices, with fuel being one of the airline industry's largest variable costs.

The prospect of sustained low oil prices has lifted investor optimism regarding Delta’s near-term profit margins and operating costs.

What To Know: West Texas Intermediate (WTI) crude oil fell to approximately $67 per barrel, marking one of the steepest single-day declines since mid-2022. The drop in prices was spurred by Israeli airstrikes on Iranian military installations that avoided Iran's oil infrastructure, averting a broader energy supply crisis.

With no immediate disruption to Iran's oil exports, markets interpreted the measured response as a signal that regional stability could prevail, despite ongoing geopolitical tensions. This sentiment calmed fears of a potential oil price spike, which would have had a direct impact on operating costs for Delta and other major airlines.

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Delta's financial performance is closely tied to fuel costs, which constitute one of its largest expenses, representing nearly 20% of operating costs in recent quarters. With the airline's extensive domestic and international network—serving over 300 destinations in 50 countries—a drop in fuel prices could enhance Delta's profitability and free up capital for strategic initiatives.

Additionally, Delta's unique position as the only major U.S. airline with its own oil refinery, located in Trainer, Pennsylvania, allows it greater flexibility in managing fuel costs. While Delta still relies on market prices to cover most of its fuel needs, the refinery gives it a strategic advantage in hedging against sudden price spikes.

A lower-cost fuel environment also gives Delta greater flexibility in pricing, a factor that could help it maintain its competitive edge in a high-demand travel market. Delta has been focused on expanding its premium service offerings—such as Delta One Suites and Delta Premium Select seating—to capture more of the high-margin travel segment.

Lower fuel costs could allow Delta to retain competitive fares across all classes, potentially attracting additional customers and increasing load factors across its network.

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How To Buy DAL Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Delta Air Lines’ case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, DAL has a 52-week high of $56.64 and a 52-week low of $30.76.