Currently trading at under $35, shares of international airline company Delta Air Lines (DAL) slumped in price with the emergence of the COVID-19 omicron variant, fostering investor concerns about the sector's revival. However, because domestic travel remains off the government's radar regarding the imposition of travel restrictions, is now the right time to scoop up the shares of DAL? Let's find out.Incorporated in 1924, Delta Air Lines Inc. (NYSE:DAL) operates scheduled passenger and freight flights across the United States and internationally. In addition, the Atlanta, Ga.-based company offers third-party customer vacation packages, aircraft charters, aircraft maintenance, repair, and overhaul services.
Closing yesterday's trading session at $33.53, the stock has declined 17.1% in price over the past month, due mainly to concerns over the airline industry’s recovery with the emergence of the omicron variant, which could spell fresh travel restrictions.
As governments worldwide tighten international travel restrictions, investors fear a slowdown in future bookings and delays in the industry’s already sluggish recovery. This, along with DAL's already poor profitability, might cause the stock to remain under pressure in the near term.