2 Airline Stocks Moving in Opposite Directions Today

Delta Air Lines (NYSE:DAL) and Southwest Airlines (NYSE:LUV) are making headlines today after issuing key updates.

Delta Air Lines stock was last seen trading 4.3% lower at $48.15, after slashing its first-quarter revenue and earnings guidance, citing weak domestic demand. The airline now expects revenue growth of no more than 5%, down from its previous 6%-8% estimate, and adjusted earnings between 30 and 50 cents per share, well below its prior 70 cents to $1 forecast. Since the start of 2025, DAL has taken a 19% haircut.

In response, UBS cut its price target on the equity to $77 from $90. Options traders are turning bearish as well, with 7,110 puts traded already today — triple the average intraday volume. Most popular is the March 50 put, while new positions are being sold to open at the second most active contract, the weekly 3/14 46-strike put.

At last glance, Southwest Airlines stock was up 9% at $30.72, after announcing major policy changes, including baggage fees and a new basic economy fare, following pressure from activist investor Elliott Investment Management. The shift marks a significant strategy change for the budget airline, which has long differentiated itself with free checked bags and simple fare structures. Despite today’s surge, LUV still sports a 6.2% year-to-date deficit.

Southwest Airlines stock is also seeing higher-than-usual options activity after earnings. So far, 6,749 calls and 8,916 puts have been exchanged, which is 9 times the amount typically seen at this point in any given session. New positions are being sold to open at the most active April 30 put.