Oil Spike Puts Airline Stocks in 'World of Hurt'

Analyst Peter Brandt warns airline stocks face fresh pressure from surging fuel costs

Published on Mar. 9, 2026

Got story updates? Submit your updates here. ›

Oil prices have spiked above $100 per barrel, putting major U.S. airlines like Delta, United, and American under significant financial pressure. Veteran trader Peter Brandt warned on social media that airlines are "headed for a world of hurt" if crude oil prices continue to rise, as jet fuel is one of the industry's highest variable costs. The surge in oil prices comes as airlines were already facing a softening demand backdrop, limiting their ability to immediately pass higher fuel costs on to consumers through fare increases.

Why it matters

The sharp rise in oil prices poses a major threat to the financial health of U.S. airlines, which have limited ability to offset higher fuel costs in the current environment of weakening travel demand. This could lead to reduced earnings guidance and further stock price declines for major carriers like Delta, United, and American.

The details

West Texas Intermediate crude oil has jumped around 60% over the past month, surging above $100 per barrel due to supply disruptions in the Strait of Hormuz and escalating conflict in the Middle East. This is a critical development for airlines, as jet fuel is one of their highest variable costs. Analyst Peter Brandt warned on social media that if crude oil prices continue to rise, airlines are "headed for a world of hurt." Both Delta and United have already seen double-digit year-to-date stock declines as investors question their 2026 earnings guidance, which was based on much lower fuel price assumptions.

  • Oil prices have jumped around 60% over the past month.
  • Brandt issued his warning on social media on March 9, 2026.

The players

Peter Brandt

A veteran futures trader who warned on social media that airlines are "headed for a world of hurt" if crude oil prices continue to rise.

Delta Air Lines

A major U.S. airline that has seen its stock price decline due to concerns over higher fuel costs and reduced earnings guidance.

United Airlines Holdings

A major U.S. airline that has also seen its stock price decline due to concerns over higher fuel costs and reduced earnings guidance.

American Airlines Group

A major U.S. airline that has faced pressure from Wall Street on its ratings due to limited financial flexibility in a higher-cost environment.

U.S. Global Jets ETF

An exchange-traded fund that tracks the entire U.S. airline sector.

Got photos? Submit your photos here. ›

What they’re saying

“If Crude Oil does what the chart indicates might be possible, then airlines are headed for a world of hurt. I would not want to be long airline stocks this coming week.”

— Peter Brandt, Veteran Futures Trader (X)

What’s next

Investors will be closely monitoring the trajectory of oil prices and the impact on airline earnings guidance and stock performance in the coming weeks.

The takeaway

The sharp rise in oil prices poses a significant threat to the financial health of U.S. airlines, which have limited ability to offset higher fuel costs in the current environment of weakening travel demand. This could lead to reduced earnings guidance and further stock price declines for major carriers, underscoring the industry's vulnerability to external shocks.