UAL, AAL, DAL Stocks Suffer Weekly Loss: Barclays Cuts Price Targets But Sees A Silver Lining

• Barclays cut its price targets for United, Delta and American Airlines due to higher energy costs but kept Overweight ratings.
• The firm said strong revenue growth could support higher margins if fuel prices ease. 
• July fuel costs eased month over month but remained well above last year, while ongoing Middle East tensions keep oil prices high. 

United Airlines (UAL), Delta Air Lines (DAL) and American Airlines (AAL) stocks are facing a fresh fuel-cost headwind as oil prices surge above $100 a barrel, prompting Barclays to cut its price targets on all three carriers. 

All three major air carrier stocks declined between 0.3% and 1.4%  last week. 

Barclays Sees Fuel Costs Muddying Near-Term Numbers

Barclays analyst Brandon Oglenski cut his price target on United Airlines to $160 from $175, on Delta to $95 from $105, and on American to $14 from $19, maintaining ‘Overweight’ ratings on all three. Climbing energy prices drove the reductions, even as the carriers continue to post yield gains, Oglenski said.

Despite the lower targets, Oglenski said long-term investors should focus on strong revenue growth rather than short-term fuel price swings. He explained that the setup pointed towards a  “structurally higher margin potential if energy markets return to prewar levels," framing the current pressure as a temporary drag rather than a structural problem for the group's earnings power.

United Airlines stock edged 0.03% higher overnight, ahead of Monday, while American Airlines and Delta Air Lines stocks slipped 0.7% each. 

BTS Data Offers A Mixed Picture For Airline Fuel Expenses 

The price target cuts land at an already difficult moment for the sector. All three carriers' shares are down double digits since August, as investors have grown increasingly nervous about jet fuel costs eating into margins even as travel demand holds firm. United, Delta and American have each underperformed the broader market over that stretch, with American's stock taking the steepest percentage hit. 

New Bureau of Transportation Statistics (BTS) figures released this month add nuance to the fuel narrative Barclays is pricing in. According to BTS, total fuel expenditure of U.S. scheduled-service airlines fell to $5.89 billion in July, down 1.8% from June's $5.99 billion, even though carriers used 3.8% more fuel during the month. The average cost per gallon actually declined 5.4% sequentially to $3.40. 

However, fuel costs remain much higher than a year ago, up 45.4% from $2.34 per gallon in July 2025, keeping pressure on airline profits despite the recent monthly improvement.

The U.S.-Iran conflict, which erupted after U.S. and Israeli strikes on Iran in February, has settled into a grinding, protracted confrontation with no ceasefire in sight, as disruptions tied to the Strait of Hormuz, through which a large share of the world's seaborne oil passes, remain a persistent risk factor and a key driver behind the elevated jet fuel prices squeezing airline margins. Despite the roadblocks, all three carriers posted revenue growth in fiscal second-quarter 2026. 

Oil prices have topped $100 a barrel for the first time since May. Brent crude futures were up about 2.5% at $107.20 a barrel, while WTI crude rose 2.44% to $102.49 at the time of writing. 

UAL, AAL, DAL Stocks: Retail View 

On Stocktwits, retail sentiment around Delta Airlines and United Airlines remained ‘bullish’, while that of American remained ‘neutral’. 

So far this year, UAL and AAL stocks have declined 1% and 15%, respectively, while DAL stock has gained 15%. 

Also See: Why Is RUM Stock Soaring Nearly 20% Higher Overnight?

For updates and corrections, email newsroom[at]stocktwits[dot]com.