Airlines Stocks Slide With Turbulent Earnings Season Ahead -- WSJ

Dow Jones04-07

By Dean Seal

Airline investors are getting jitters ahead of what is expected to be a bumpy earnings season.

Delta Air Lines will lead off on Wednesday, providing a snapshot of how surging jet fuel prices have cut into profits. Some analysts have trimmed their earnings targets and are warning investors to prepare for the worst.

"The Iran conflict has flipped the airline industry on its head," Melius Research analyst Conor Cunningham said in a note on Monday. "Fuel costs have more than doubled at a time when demand has improved."

-- Hoping to ride that wave of demand, airlines are passing their elevated costs on to consumers with higher fares and fees. Delta and United Airlines, the industry's biggest profit generators, are charging more for checked bags. JetBlue Airways and American Airlines are too.

-- Investors are waiting to see if the higher prices have started hurting demand for air travel. If they are, airlines will be forced to cut more routes and flights.

-- Shares of Delta, Southwest and American were down about 2% on Tuesday. Shares of United, JetBlue, Frontier Group and Alaska Air were down about 4%.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

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April 07, 2026 11:59 ET (15:59 GMT)

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