Why Airline Stocks Are Soaring Today
U.S. airlines are presenting at an industry conference on Thursday, and investors are excited about what they are saying. Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all traded up more than 5% on Thursday afternoon on optimism about their outlook for the year.
It's a confusing time to be an airline investor. After two years of depressed revenue due to the pandemic, demand is strong heading into the important summer tourism season. But higher fuel and labor costs threaten to eat into that summer surge, and the growing threat of inflation eating into consumer spending as investors wondering how long the upswing can last.
On Thursday, a number of airlines updated their outlook for the current quarter, and investors seemed relieved with what they heard. Southwest said that demand continues to be strong, despite rising inflation, and said that although fuel costs will come in well above expectations, strong pricing power will more than offset the higher expense.
Source Fool.com
