The ongoing conflict in Iran has triggered significant turbulence for the airline industry, primarily due to soaring crude oil prices and potential declines in international travel demand. Spirit Airlines has succumbed to these pressures, marking a stark warning for the sector. However, not all airlines are facing doom; Delta Airlines and Southwest Airlines appear poised to navigate these challenges effectively.

Delta Airlines has shown resilience, reporting a 45% increase in Q4 2025 earnings, driven by a surge in premium ticket sales. This trend reflects the “K-shaped economy,” where affluent consumers thrive despite broader economic challenges. Analysts expect Delta’s earnings to decline modestly by 5.3% in 2026, suggesting that the airline could outperform expectations as it continues to capitalize on premiumization.

Meanwhile, Southwest Airlines is positioned to benefit from Spirit’s exit, potentially capturing a larger share of the low-cost travel market. While high fuel prices pose risks, a swift resolution to geopolitical tensions could bolster its recovery. With shares trading at a reasonable valuation, Southwest may have the potential for a rebound as market dynamics shift.

Source: fool.com