Delta Air Lines (DAL) has outperformed since the Iran war began, despite the increasing costs and geopolitical fragmentation of the airline sector. Despite this, DAL is still trading above $63 per share, which is about where it was on December 1st of last year when crude oil was below $60/bbl. The company's Trainer Refinery in Pennsylvania, which it bought from Phillips 66 in 2012, provides a "natural hedge" by capturing refining margins that negatively impact other carriers. However, it does not protect Delta from the rising cost of the underlying crude itself. Delta management recently warned of a $400 million hit to fuel expenses for Q1 2026 alone. The market is currently rewarding Delta for its premiumization strategy and its loyalty revenue from American Express. Since Dec 1st, Delta's shares have fallen nearly 10%, United, Air France/KLM has fallen more than 21%, and American has fallen over 25%.