US airline stocks are moving higher Monday, even as oil prices climb amid escalating US-Venezuela tensions following the US capture of Venezuelan leader Nicolás Maduro and his wife, Cilia Flores.
The move suggests markets are already looking past the immediate disruption and toward the possibility of increased oil supply over the medium term if Venezuela’s reserves become more accessible.
Travel disruptions ease after weekend airspace restrictions
The rally follows a choppy weekend for airlines after the FAA ordered carriers to avoid large portions of Caribbean airspace in response to US military activity. Those restrictions expired Sunday, clearing the way for operations to normalize.
Delta Air Lines $DAL ( ▲ 0.1% ) , which hit an all-time high Monday, said it proactively added more than 2,600 seats through extra flights across its Caribbean network for January 5 and expects service to fully normalize by Tuesday. American Airlines $AAL ( ▲ 2.62% ) also boosted capacity, adding roughly 7,000 extra seats to accommodate displaced travelers.
Oil rises now, but the market is thinking ahead
Crude prices moved higher on the geopolitical headlines, with West Texas Intermediate futures up about 1.7% Monday afternoon. Under normal circumstances, higher oil prices would pressure airline stocks.
Instead, investors appear to be focusing on the potential for longer-term supply relief. Comments from President Trump over the weekend about rebuilding Venezuela’s oil infrastructure and bringing US companies into the country have fueled expectations that production could eventually ramp up.
Energy stocks join the move higher
US oil producers are also rising in Monday trading, reinforcing the idea that markets are beginning to price in a scenario where Venezuelan reserves are more fully developed over time.
For airlines, that outlook helps offset short-term fuel cost concerns, supporting gains even as crude ticks higher in the near term.