Airline Stocks Rally as Oil Prices Plunge, Delta Posts Higher-Than-Expected 1Q Results

Dow Jones04-08 20:58
 

By Connor Hart

 

Airline stocks soared as oil prices plunged, and after Delta Air Lines reported higher-than-expected first-quarter financial results.

Shares of Delta jumped 13%, to $74.12, in premarket trading Wednesday. United Airlines Holdings stock was up 13%, to $101.30, while American Airlines shares rose 12%, to $12.10. Shares of Southwest Airlines and JetBlue Airways gained 13%, to $42.64, and 9.2%, to $4.97, respectively.

Oil prices were on course for a historic tumble after President Trump said he agreed to a cease-fire with Iran if the Strait of Hormuz reopened immediately. Benchmark Brent crude prices were down more than 16% shortly before 9 a.m. ET on Wednesday, as a handful of ships began to sail out of the Persian Gulf.

Separately, Delta logged higher adjusted earnings and revenue in the first quarter as travel demand remained healthy, even as profit was pressured by surging fuel costs.

Delta is the first major U.S. airline to report quarterly results, and analysts are watching the resilience of travel demand and company finances as the Iran war carries on.

The biggest U.S. carrier by market capitalization swung to a loss of $289 million, or 44 cents a share, in the first quarter, compared with a profit of $240 million, or 37 cents a share, a year earlier. Its bottom line was pressured by higher fuel expenses.

Stripping out one-time items, though, the company reported earnings of 64 cents a share. Analysts had projected the figure to come in at 58 cents a share, according to FactSet. Total operating revenue increased 13% to $15.85 billion and topped Wall Street models for $15.03 billion.

Delta executives said travel demand remains healthy, and that the airline has room to increase fares and fees.

 

Write to Connor Hart at connor.hart@wsj.com

 

(END) Dow Jones Newswires

April 08, 2026 08:58 ET (12:58 GMT)

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