Travel and leisure stocks bore the brunt of investor anxiety on Friday after Israel launched airstrikes on Iranian targets, stoking fears of an escalating conflict in the Middle East. The strikes, aimed at crippling Iran's nuclear infrastructure, rattled global markets and sent oil prices surging, sparking a classic flight to safety.
United, Delta, Turkish Airlines, and a host of other carriers canceled Israel flights or extended a suspension of service. Israel launched a missile strike on Iran overnight, and Iran launched more than 100 drones toward Israel on Friday morning.
European airline stocks tumbled in early trading on Friday after Israel launched widescale strikes against Iran, which pushed the oil price up by 7% and ignited a rush out of risk assets.
No one should be under any illusions that the air travel market isn't under some pressure right now. It is. Still, the long-term case for investing in a higher-quality airline like Delta Air Lines (DAL -4.88%) remains undiminished, and some of the forces that created the weakness are now strengthening the case for buying the stock.
Delta Air Lines warned new tariffs on imported airplanes and parts could force the airline to stop buying foreign-made planes impacting millions of customers.
Delta Air Lines (DAL 1.14%) stock rose by 16.2% in May, according to data provided by S&P Global Market Intelligence. The move primarily results from the de-escalation of the tariff conflict, primarily between the U.S. and China in mid-May.
Delta's strategic focus on premium travel, international routes, and loyalty programs drives revenue growth and margin resilience despite sector headwinds. Disciplined cost control, robust free cash flow, and a strengthened balance sheet support Delta's financial stability and credit rating upgrade. Attractive valuation, sustainable dividend, and potential for further shareholder returns set De...
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