Airline passengers were a beleaguered lot on Monday. Indeed, flights were delayed or canceled as sub-zero temperatures, extreme winds, and heavy snow hit the U.S. Airline stocks, including Delta Airlines (DAL), JetBlue (JBLU), Southwest Airlines (LUV), and United Airlines (UAL) saw a sharp sell-off on Friday after Delta Airlines trimmed its FY24 forecast.
According to data from the FlightAware website, as of 10:30AM EST, more than 2,000 flights were canceled, while 2,126 flights into, within, or out of the United States were delayed. Southwest Airlines canceled 638 flights, or 16% of its daily schedule. In addition, United Airlines canceled 282 flights, or 11% of its schedule, while Alaska Airlines canceled 155 flights, or 22%.
Denver International was among the worst-hit airports, with 16% of outbound and 17% of inbound flights canceled early Monday. Chicago Midway International saw more than 30% of flight cancellations that were originating from the airport.
Is DAL a Buy or Sell?
Meanwhile, DAL’s trimmed FY24 forecast saw the stock slide on Friday. Top-rated Citi analyst Stephen Trent called the stock price drop a little difficult to understand since the company might double its free cash flow this year. Nevertheless, the analyst also expects a rise in maintenance expenses.
Trent reiterated a Buy rating on DAL with a price target of $56, implying an upside potential of 45.6% at current levels.
Overall, analysts remain bullish about DAL stock, with a Strong Buy consensus rating based on nine Buys. Over the past year, DAL stock has gone up by only 1.1%, and the average DAL price target of $55 implies an upside potential of approximately 43% at current levels.
