United, Delta and American Airline Stocks Rise as Oil Prices Slide Monday

TLDR

• Airline stocks rose over 3% in premarket trading Monday after oil prices fell sharply
• Brent crude dropped 7.1% to $85.17 a barrel; WTI futures fell around 6%
• Iran announced it would halt strikes on transit corridors if the US stopped military action in the region
• United Airlines had previously approached both Delta and American Airlines about mergers, with no deals materialising
• Despite Monday’s gains, airline stocks are down sharply in July, with American off 20% for the month

Airline stocks climbed in premarket trading on Monday after crude oil prices dropped following news out of Iran over the weekend.

Delta, United, American, Southwest, Alaska Air, and JetBlue all gained between 2.9% and 4% before the opening bell.

American Airlines Group Inc., AAL

Oil Price Drop Drives the Rally

Brent crude futures fell 7.1% to $85.17 a barrel early Monday. That came after oil hit as high as $101 a barrel at one point last week.

WTI crude futures also dropped around 6% on the day.

The move followed a weekend announcement from Iranian officials. Tehran said it would stop strikes on critical transit corridors if the United States halted its military activity in the region.

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