With oil prices in steep decline for a second day and Delta Air Lines, Inc. posting a smaller than expected second quarter loss, airline stocks have experienced broad strength Wednesday morning.
The airline sector was already on the upside after Delta's results were made public. However, the sector received an extra boost after a report showed an unexpected rise in crude oil inventories.
The pickup in buying interest has come after a good number of airline stocks have been pushed down to levels near 52-week lows on higher fuel costs, trouble in closing merger deals and depreciating customer demand due to ongoing economic woes.
Shares of Northwest Airlines Corp. (NWA), UAL Corporation (UAUA), AMR Corporation (AMR), Continental Airlines (CAL) and Delta Airlines (DAL) have all posted gains over 20% by 11:15 am Eastern Time.
On the NYMEX Wednesday morning, light sweet crude for August delivery moved to $133.63, down $5.11 for the day. Prices touched as low as $132.00 immediately after the inventory data was released. On Tuesday, oil saw its largest single-day drop in more than 17 years as demand concerns led traders to sell energy commodities.
Data released by the Energy Information Administration for the week ended July 11 showed U.S. commercial crude oil inventories increased by 3.0 million barrels from the previous week. Analysts were looking for a decline of about 2.5 million barrels.
Before the opening bell on Wednesday, Delta Air Lines reported a net loss for the second quarter on charges related to goodwill and other intangibles and amid higher fuel prices. However, the company reported a profit for the quarter excluding charges. Revenue for the quarter increased 10% from the year-ago period.
For the second quarter, the company's net loss was $1.04 billion, or $2.64 per share compared to net income of $1.59 billion in the prior-year quarter.
Delta said it incurred more than $1 billion increase year-over-year in fuel input costs related to higher oil prices. Special charges for the quarter were $1.2 billion, net of tax, primarily related to impairment of goodwill and other intangibles.
Excluding special and reorganization items, the company reported a net income of $137 million, or $0.35 per share, compared to net income of $274 million in the year-ago period. On average, ten analysts polled by First Call/Thomson Financial expected earnings of $0.10 per share for the quarter.
Northwest stock rallied $1.40 to $6.79 a share, while UAL Corporation, the parent company of United Airlines, climbed 82 cents to $3.95. AMR Corporation, the parent company of American Airlines, advanced $1.03 to $ 5.44, compared to Continental which rallied $1.42 to $8.07 per share. Delta was up $1.0, hitting $7 5.74 a share.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.