Why Delta Air Lines Shares Are Falling

Delta Air Lines, Inc. DAL shares are trading lower by 4.2% to $33.21 Wednesday morning. Shares of airline stocks are trading lower in sympathy with United Airlines UAL, which fell after reporting third-quarter results. United said fourth-quarter EPS could be as low as $1.50 if Tel Aviv flight suspensions last through year end.

See Also: Why United Airlines Stock Is Trading Lower Wednesday

Why It Matters

When airlines suspend flights to a specific destination due to conflict or security concerns, it can lead to a significant loss of revenue for those airlines. In this case, when Delta Air Lines or other U.S. airlines suspend flights to Israel, it means they are losing out on the revenue generated from those routes. This can negatively impact their financial performance and, consequently, their stock price.

Geopolitical conflicts can also have broader economic impacts, which can affect the overall health of the airline industry. These impacts may include changes in consumer sentiment, fluctuations in oil prices and disruptions in global trade, all of which can influence airline stocks.

See Also: What's Going On With Bank Of America Shares

According to data from Benzinga Pro, Delta Air Lines has a 52-week high of $49.81 and a 52-week low of $28.21.