Travel Demand Rises Despite Fuel Prices—Should You Invest in Airline Stocks?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 21 2026
0mins
Should l Buy DAL?
Source: Marketbeat
Airline Revenue Outlook: Major airlines, including Delta and American Airlines, have reported stronger-than-expected travel demand, leading to optimistic revenue forecasts for the first quarter despite recent challenges such as rising fuel costs and flight disruptions.
Stock Performance: Airline stocks have faced pressure due to increased oil prices and operational challenges, but analysts remain bullish on Delta's stock, with a majority rating it as a "Buy" based on solid demand projections.
Fuel Cost Concerns: Airlines are grappling with higher jet fuel costs, which are expected to impact earnings. Delta anticipates fuel prices to average around $3.00 per gallon, which is higher than previous estimates.
Market Sentiment: Despite the challenges, travel demand remains robust, and analysts suggest that the current dip in airline stocks may present buying opportunities for investors, as the sector is expected to recover and grow in the long term.
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Analyst Views on DAL
Wall Street analysts forecast DAL stock price to rise
18 Analyst Rating
18 Buy
0 Hold
0 Sell
Strong Buy
Current: 67.600
Low
77.00
Averages
83.50
High
90.00
Current: 67.600
Low
77.00
Averages
83.50
High
90.00
About DAL
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company has hubs and markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon, and Tokyo. Its segments include Airline and Refinery. Its airline segment is managed as a single business unit that provides scheduled air transportation for passengers and cargo throughout the United States and around the world and includes its loyalty program, as well as other ancillary businesses. Its refinery segment operates for the benefit of the airline segment by providing jet fuel to the airline segment from its own production and through jet fuel obtained through agreements with third parties. The refinery's production consists of jet fuel as well as non-jet fuel products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Airline Outlook: Delta Air Lines will report before Wednesday's opening bell, with Cramer noting its strong performance among airlines and positive comments from CEO Bastian about ongoing demand, but he cautions that prolonged U.S.-Iran conflict could negatively impact the company's numbers.
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See More
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- Helium Supply Chain Disruption: The Wall Street Journal noted that the war has disrupted helium supply chains in Qatar, with Linde and Air Products identified as beneficiaries, although Linde faces challenges due to its smaller helium revenue share compared to Air Products.
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