Delta, United, Southwest Stocks In Focus As Airline Group Signals Sharp Drop In Profits - Delta Air Lines

Top US airline stocks have wavered in the past few days as investors watch the closure of the Strait of Hormuz and its impact on jet fuel prices. Delta Air Lines (NYSE:DAL) stock retreated from the year-to-date high of $83.35 to $79.42, while United Airlines Holdings (NASDAQ: dropped to $105 from this month's high of $117.

IATA Warns Airline Profits to Drop This Year

Southwest Airlines (NYSE:LUV) fell to $41.5, down by 25% from its highest point this year. The US Global Jets ETF (NYSE:JETS) stock is in a correction after falling by 11% from the year-to-date high.

JETS ETF stock is much lower than the YTD high | Source: TradingView

In a report published today, June 7, IATA, an industry body representing global airlines, predicted that airlines will experience a sharp decline in profits this year because of the elevated jet fuel prices. It estimates that these companies will bring in about half of the collective earnings it predicted previously.