Airline Stock Roundup: DAL Boosts Dividend Payout, JBLU, UAL in Focus

In the past week, Delta Air Lines DAL grabbed headlines with management announcing a 25% hike in the quarterly dividend payout. This was the second dividend increase announced by DAL since its resumption of quarterly dividend payments following the COVID-induced hiatus. The decision reflects DAL’s shareholder-friendly approach. Financial prosperity owing to strong passenger revenues may have led to the dividend hike.

JetBlue Airways’ JBLU second-largest investor, Vladimir Galkin, has reportedly threatened to sell his nearly 10% stake in the low-cost carrier if the company's cost-cutting plan and other efforts to improve its performance fail. In a bid to modernize its fleet. JetBlue CEO Joanna Geraghty has reportedly told the carrier’s staff that the company's return to profitability will take longer than expected. SkyWest SKYW has ordered 60 new Embraer E175 jets. In a customer-friendly move, United Airlines UAL has launched a personalized mobile app designed to help users easily catch connecting flights.

Read the last Airline Stock Roundup here.

Recap of the Most Recent Important Stories

1.  In a shareholder-friendly move, Delta’s board of directors approved a dividend hike, thereby raising its quarterly cash dividend to 18.75 per share (75 cents annualized) from 15 cents (60 cents annualized). The raised dividend will be paid out on Aug. 21, 2025, to stockholders of record at the close of business on July 31, 2025. The move reflects DAL’s intention to utilize free cash to enhance its shareholders’ returns. 

DAL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

2. JetBlue announced two major improvements in its baggage experience — a new mobile app feature that will help customers track their checked bags and a new option that allows customers to share the location of an Apple AirTag or Find My network accessory placed inside their checked luggage.

The new baggage tracking feature in the JetBlue Mobile App will offer travelers real-time updates on checked luggage. This added facility will enhance customers' travel experience as they stay assured of their bags’ position and availability.

3.  United Airlines’ passengers with connecting flights at its U.S. hub airports shall now enjoy a special section of the app which offers a countdown to connecting flights, real-time flight status updates, turn-by-turn directions to their connecting gate with estimated walk times, ideas for longer layovers, and notifications if the carrier's ConnectionSaver technology (an industry-leading, AI-powered tool that has saved more than 3.3 million customer connections since its launch in 2019) is activated to hold the plane for them.. These facilities are available only on UAL’s mobile app.

4. SkyWest intends to purchase and operate 16 E175 aircraft under a multi-year contract for Delta, with deliveries expected to begin in 2027. SkyWest also secured firm delivery positions with Embraer for 44 additional E175s from 2028 to 2032 for potential future flying contract opportunities, with purchase rights on 50 additional E175s. The 16 new E175 aircraft are expected to replace 11 CRJ900s and 5 CRJ700s currently under contract with Delta.

Airline Stocks Performance

The following table shows the price movement of the major airline players over the past week and during the last six months

The NYSE ARCA Airline Index increased by 4.5% to $54.7 as all airline stocks traded in the green over the past week. Oil prices declined with hostilities easing between Iran and Israel, leading to the price uptick. Over the past six months, the NYSE ARCA Airline Index has decreased by 18.7%.

What’s Next in the Airline Space?

Industry watchers will be closely monitoring further updates on the Israel-Iran conflict and the resultant impact on oil prices and airline stocks. Passenger volumes are likely to be high around July 4. Market watchers will closely watch the performance of airlines during the period. 

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This article originally published on Zacks Investment Research (zacks.com).

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