Delta Air Lines (DAL) stock experienced a decline in after-hours trading following a contentious congressional hearing where airline executives, including those from Delta, were scrutinized over additional fees for services like checked baggage and seat selection. The hearing, held by the Senate Permanent Subcommittee on Investigations, highlighted concerns over what lawmakers termed as "junk fees," which they argue unfairly increase costs for passengers. Delta, along with other major airlines, defended these fees as providing customer choice, but the negative sentiment from the hearing may have impacted investor confidence.
The hearing comes amid a broader push by the Biden administration to address these fees, with the Department of Transportation working to increase transparency and potentially reduce such charges. The scrutiny and potential regulatory changes could pose challenges for airlines, which have relied on these fees as a significant revenue stream. The ongoing debate and uncertainty surrounding these fees may have contributed to the stock's movement in after-hours trading.
Delta Air Lines' stock fell 2.33% to $62.76 in after-hours trading, following a 2.7% increase to close at $64.26 on December 4, 2024.