Delta Slips After BMO Trims Price Target as Fuel Costs Weigh on Airlines

Delta Air Lines shares fell about 2.5% to $82.80 on Monday after BMO Capital Markets lowered its price target to $100 from $105. The stock now sits roughly 13.5% below its July 2 record high of $95.67.

The pullback reflects higher fuel costs hitting the whole airline sector, with American Airlines and United Airlines also trading lower. Elevated crude prices tied to U.S.-Iran tensions remain the main pressure point for carriers' margins.

Despite the weakness, options traders have been buying the dip, with call volume running well above historical norms. Investors will watch oil prices and upcoming guidance for signs of how much fuel expense airlines can pass on to travelers.