Delta Air Lines' stock price plummeted 5.04% during intraday trading on Thursday. The sharp decline coincided with negative developments affecting the broader airline sector.

The drop occurred as shares of U.S. airline operators fell broadly following a 3% jump in oil prices. Airlines are highly sensitive to fuel costs, and a sudden increase in oil prices can significantly pressure operating expenses and profitability.

Furthermore, global air travel remains severely disrupted due to the escalating conflict in the Middle East, which has forced the closure of key hubs and led to widespread flight cancellations. Delta Air Lines has cancelled flights from New York to Tel Aviv through March 22 and from Tel Aviv to New York through March 23, directly impacting its operations and revenue.

Additionally, analyst sentiment showed a slight adjustment as Rothschild & Co Redburn lowered its price target on Delta Air Lines to $70 from $72, though it maintained a Buy rating on the shares.