Delta Air Lines, Inc. (NYSE:DAL) shares are trading higher by 2% to $36.44 Wednesday morning. Shares of airline stocks have been volatile this week amid the Israel-Hamas conflict, which has caused travel uncertainty and lead to U.S. airlines suspending flights to Israel.
U.S. airlines have suspended flights to Israel in response to rocket attacks by Hamas, the Palestinian militant organization in control of the Gaza Strip, resulting in casualties and numerous individuals held captive in Gaza.
See Also: Hezbollah Missiles Intensify Israel Conflict; Yellen Says More Iran Sanctions Possible
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: Biden’s Administration Bolsters Israel’s Defense As First Shipment Of Advanced Weaponry Lands
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.
