Airline stocks rallied on Monday, with United and Delta leading gains, as optimism over a potential U.S.-Iran peace deal lifted the sector on expectations of lower fuel costs.
- UAL shares surpassed the carrier’s previous record closing level of $117.53 set in January.
- Other airline stocks broadly moved higher as traders bet on relief from energy-related cost pressures.
- The U.S.-Iran peace framework could pave the way for the reopening of the Strait of Hormuz after more than 16 weeks of disruption.
United Airlines (UAL) and Delta Air Lines (DAL) shares closed at record highs on Monday as broader markets rallied on optimism over a potential U.S.-Iran peace deal.
A potential peace agreement between the United States and Iran boosted expectations that airlines could benefit from lower fuel costs and better operating conditions across the sector.
UAL, DAL Lead Airline Rally As Iran Peace Hopes Lift Sector
While United Airlines ended the session 3.85% higher at $119.97, Delta Air Lines closed with a gain of 1.22% at $84.07.
Earlier in Monday afternoon trading, United Airlines gained over 5%, rising to around $121 and moving past its previous high of $117.53 set on Jan. 6. Delta Air Lines also touched an all-time high of $87.37 during the session.
Other airline stocks also ended the session higher on Monday as optimism over a potential Iran peace deal lifted sentiment across the sector. American Airlines Group (AAL) ended 3.2% higher, while Southwest Airlines (LUV) closed up 1.34%.
U.S. jet fuel prices were averaging around $3 per gallon as of Friday, according to the Argus U.S. Jet Fuel Index. That marks a decline of about 39% from peak levels seen after U.S. and Israeli strikes on Iran in February, reported The Wall Street Journal.
Trump Says Iran Deal Done, Oil Flow To Resume Through Strait
The rally in airline stocks came after reports that the United States and Iran reached a peace framework to end the conflict and reopen the Strait of Hormuz after more than 16 weeks of closure, easing concerns over energy supply disruptions.
President Donald Trump confirmed the agreement in a post on Truth Social, saying, “The Deal with the Islamic Republic of Iran is now complete. Congratulations to all!” He added that reopening the Strait would follow the removal of the U.S. naval blockade, allowing ships to resume passage through the critical waterway.
In another post, Trump said the Strait would reopen on Friday after the deal is signed, calling it a step toward “Peace and Security” in the region and saying oil would “flow on both ends again.”
Earlier, Pakistani Prime Minister Shehbaz Sharif said the official signing ceremony is scheduled to take place in Switzerland on June 19.
UAL, DAL: What Retail Traders Feel
On Stocktwits, retail sentiment for both UAL and DAL remained ‘neutral,’ while message volume for both stocks was ‘high.’
Message activity for UAL rose more than 36% over the past seven days, while DAL saw an even sharper jump of nearly 55% during the same period.
Over the past 12 months, United Airlines (UAL) has gained nearly 60%, while Delta Air Lines (DAL) has risen about 77%. Southwest Airlines (LUV) advanced nearly 45% and American Airlines (AAL) climbed around 47% during the same period.
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