Why Airline Stocks Flew Higher Today
On Friday, investors were digesting fresh data that suggested a "Goldilocks" economy -- not too hot, but not too cold -- is still a reasonable forecast for the quarters ahead. That would be good news for a whole range of industries including airlines, a sector that could be at risk of seeing demand dry up if consumers are feeling stressed.
Airline investors reacted to the latest data with a cheer, sending shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) up 5% apiece on Friday.
Airline investors are doing their best to be economic forecasters right now. The airlines came into 2022 hoping for a year of recovery, with strong pent-up demand giving revenues a boost and helping carriers rejuvenate balance sheets that were bruised during the pandemic. The summer demand has developed as expected, but airlines have been forced to deal with unexpected headwinds including higher labor and fuel costs.
Source Fool.com
