Delta Air Lines Inc. (NYSE:DAL) is reviewing its planned Oct. 23 launch of daily Atlanta-Riyadh flights after deadly attacks at Riyadh’s King Khalid International Airport this week.
Safety to Decide the Call
Delta CEO Ed Bastian told CNBC in an interview on Friday that the airline was disappointed by the news. “Safety is going to make the call,” Bastian said. Delta will tell customers of its decision soon.
In August, Delta Air Lines said it will launch nonstop flights between Atlanta and Riyadh on Oct. 23, marking its first direct service to Saudi Arabia and the first nonstop U.S.-Riyadh route operated by an American airline.
Houthi Attacks Put Gulf Routes at Risk
The review follows an escalation in violence. Three people were killed in the attacks, Saudi Arabia’s civil aviation authority said. Iran-backed Houthi rebels in Yemen claimed the strikes and have stepped up attacks in the kingdom.
Other carriers are also responding. German airline Deutsche Lufthansa AG, also known as Lufthansa (OTC:DLAKY), is pausing flights into Saudi Arabia through at least Oct. 16, the report noted, citing a company spokesperson.
Delta plans daily service from Oct. 23 to Oct. 30, then three weekly flights. When it announced the route earlier this year, Delta said it would be the first nonstop service between the U.S. and Riyadh operated by a U.S. airline.
Delta Posts Mixed Q3 Results
The uncertainty comes as Delta reported mixed third-quarter results on Friday. Revenue for the quarter came in at $20.19 billion, topping the analyst estimate of $18.68 billion by 8.08%.
But posted earnings per share (EPS) of $1.72 missed the expected $1.80 by 4.44%.
Trading Metrics
Delta Air Lines has a market capitalization of about $54.04 billion. Over the past 52 weeks, its stock has traded as high as $95.68 and as low as $55.03.
Over the past 12 months, the aviation stock has gained 42.95%, while it is up 18.98% year to date.
Currently, DAL is positioned at 66.68% of its 52-week trading range.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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