Airline Stocks Slide As Flight Disruptions Due To Winter Storm Continue

• More than 900 flights were cancelled, and nearly 3,000 flights were delayed on Monday, according to flight-tracking site FlightAware.
• Delta Airlines had to cancel 118 flights; American Airlines saw 299 flights getting delayed and 30 cancellations.
• The National Weather Service notified that an Arctic front will bring gusty to high winds and sharply colder temperatures across the entire eastern U.S.

Shares of U.S. airlines slid on Monday as a powerful winter storm over the upper Midwest U.S. continues to hurt flight operations during one of the busiest travel periods of the year.

Shares of Delta Air Lines (DAL), American Airlines (AAL), and JetBlue Airways (JBLU) fell between 2% and 3%. Southwest Airlines (LUV) fell 0.56% on Monday.

More than 900 flights were cancelled, and nearly 3,000 flights were delayed on Monday, according to flight-tracking site FlightAware. Over 1,600 flights were cancelled on Saturday. Delta Airlines had to cancel 118 flights and delay 243 others. Meanwhile, American Airlines saw 299 flights delayed and 30 cancellations.

More than 50 flights to Chicago O’Hare International Airport, in the Midwestern U.S., were canceled, and 113 were delayed. Another 28 were canceled from Hartsfield-Jackson Atlanta International Airport. 

The National Weather Service stated on its website that a rapidly intensifying winter storm continues to bring heavy snow, high winds, and blizzard conditions over the Upper Midwest and Great Lakes through Monday. An approaching storm from the Arctic front will bring a period of strong, gusty winds and a sharp drop in temperatures across the entire eastern U.S., the National Weather Service said. 

Airlines Put To The Test

The timing of the storm during the busiest travel period in the United States has posed a challenge for travelers and airlines, who are seeing record demand. Travel group Airlines for America is predicting that the nation's carriers will transport a record 52.6 million passengers from December 19 through January 5, with Friday and Sunday among the peak travel days of the holiday season, according to a CNBC report.

American Airlines and other large carriers, including United Airlines, Southwest Airlines, and Delta, waived change fees for customers at airports nationwide on Friday. Airlines have said any rebooked travel must be completed by the end of the year.

Analysts Still Buoyant On Airline Stocks

Earlier this month, Citi started coverage on major U.S. carriers, including American, with a 'Buy' rating, citing expected demand growth from 2026.

Citi noted large U.S. airlines are better positioned than low-cost rivals, which face rising costs and weaker demand.

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