Delta Air Lines Inc ( DAL ) shares are trading higher Friday afternoon after Iran said the Strait of Hormuz would remain fully open to commercial vessels during the ceasefire, a development that triggered a sharp drop in oil prices and improved the cost outlook for airlines.

Delta Air Lines ( DAL ) shares are powering higher. What’s behind DAL gains?

Oil Collapse Eases Delta's Cost Pressure

WTI crude plunged more than 14% to about $81 a barrel, while Brent fell 10% to roughly $89, as traders rapidly priced out the geopolitical supply risk that had supported energy prices.

That matters directly for Delta because jet fuel is one of the airline's most important operating costs. When crude falls this hard in a single session, the market quickly starts recalculating what that could mean for Delta's near-term fuel bill, operating margins and earnings power.

In simple terms, lower oil can reduce the pressure on Delta's expense base and make each flight more profitable, assuming travel demand and ticket pricing hold up.

Hormuz Reopening Lifts Airline Profit Outlook

Friday's move was especially supportive for DAL because this was not a small drop in energy prices. It was a sharp unwind of the geopolitical risk premium that had built up around fears of disruption in the Strait of Hormuz, one of the world's most critical oil transit routes. That reset in oil prices improved Delta's cost outlook and supported shares Friday afternoon.

Analyst Consensus Points To More Upside In Delta Stock

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $80.00. Recent analyst moves include:

Evercore ISI Group: Outperform (Raises Target to $85.00) (April 17)

UBS: Buy (Raises Target to $86.00) (April 9)

TD Cowen: Buy (Raises Target to $84.00) (April 9)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Delta Air Lines ( DAL ), highlighting its strengths and weaknesses compared to the broader market:

Momentum: Bullish (Score: 79.87) — The stock's trend strength is holding up versus the broader market.

Quality: Bullish (Score: 81.69) — The score points to solid underlying fundamentals versus many peers.

Value: Neutral (Score: 62.21) — Valuation looks reasonable, but not a deep-discount setup.

Growth: Bullish (Score: 99.84) — The profile screens as growth-strong relative to the market's opportunity set.

DAL Shares Climb Friday Afternoon

DAL Price Action: Delta Air Lines ( DAL ) shares were up 3.73% at $72.50 at the time of publication on Friday. The stock is approaching its 52-week high of $76.39, according to Benzinga Pro data.

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