Oil prices are moving higher to start the week, and airline stocks are feeling the pressure. West Texas Intermediate crude climbed more than 2.6% in morning trading as tensions between the US and Venezuela escalated, raising concerns about potential supply disruptions.
Fuel costs back in focus
Higher oil prices are rarely good news for airlines, where fuel is one of the largest operating expenses. Shares of several major carriers traded lower on the move, including Delta Air Lines $DAL ( ▼ 2.15% ) , United Airlines $UAL ( ▼ 2.22% ) , American Airlines $AAL ( ▼ 1.65% ) , and JetBlue $JBLU ( ▼ 3.73% ) , as investors priced in the risk of rising costs heading into 2026.
Geopolitics adds another variable
The oil rally comes after President Trump said the US had struck a major facility tied to alleged drug trafficking operations in Venezuela, a claim that has not been independently confirmed. The comments follow months of heightened pressure on Venezuela, including strikes on vessels and tighter enforcement actions, all of which have added a geopolitical premium back into crude markets.
For now, the move in airline stocks reflects a familiar dynamic. When oil jumps, margins get squeezed, and investors react quickly. Whether this pressure sticks will depend on how long crude prices stay elevated and whether tensions ease or escalate further in the weeks ahead.