Delta Air Lines (NYSE: DAL) traded -3% lower on Tuesday morning, after reporting the extent to which its bottom line would be affected by Hurricane Florence.
The airline reported that its revenue per passenger mile had likely increased by 4.0-4.5% in September. This is a decrease from its previous estimate of 4.0-5.0%.
Delta’s performance was impacted by the cancellation of flights as Hurricane Florence hit North and South Carolina.
More broadly, airlines have been impacted by an over 30% rise in fuel prices, driven in part by the steady rise in the price of oil over the past few months. The industry has responded by increasing airfares and other fees. The US Global Jets ETF (JETS) was down 1% on Tuesday.
In analyzing the market cycles for DAL, we can see that the stock has begun the declining phase of its current cycle.
Our view is for a further modest decline into November, as the cycle comes to a close. We see good support in the $53 to $54 range.
Delta Air Lines (DAL) Stock Chart with Weekly Bars
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