Oil rose above $102 a barrel, raising Delta's fuel costs and pressure on profit. Its shares rose about 30% over 12 months and were near their 200-day average, but those signs do not remove the added cost.
Fuel is a major cost for airlines, so a lasting rise can leave Delta with less profit if fares do not keep up. The story links higher oil prices to pressure across airline stocks. Delta's shares are also up about 30% over 12 months and were close to their 200-day average. Those signs temper the concern, but do not remove the added fuel cost.
Southwest reported third-quarter results that beat expectations, and its shares helped lift airline stocks Thursday. The story gives no sales or profit figures, but the reported results favor Southwest.
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