Delta Air Lines (DAL -12.9%) slumped on Monday as investors priced in the prospect of higher jet fuel prices and reset expectations for Q1 profitability lower. Trading volume on Delta was over 26M shares.
"The higher fuel will more than wipe out better revenue near-term resulting in modest reductions to 1Q22 estimates," warned MKM Partners analyst Conor Cunningham on the development.
It is unclear if Delta operating its own refinery will position it better than peers that hedged fuel costs.
Shares of Delta Air Line (NYSE:DAL) hit a new 52-week low of $30.03 as the Ukraine-Russia headlines and the prospect for higher jet fuel prices continued to power down expectations for a full post-pandemic recovery in the summer of 2022.