Airline shares rose as investors cheered for optimism around summer travel after US airlines Southwest Airlines and Jetloo Airways raised their second-quarter guidelines.
Shares in the Southwest rose 6%, while JetBlue rose 3.4% on Thursday.
The rosier forecast helped lift the sector, with shares of American Airlines and United Airlines both up 7% and Delta Airlines up almost 6%. The broad NYSE Arca Airline Index was up 5.3%.
The Dallas-based Southwest said it expects second-quarter revenue to rise 12 to 15 percent from the same period in 2019, before the plague hit, compared to its previous estimate of 8 to 12 percent.
Reservations at JetBlue were “exceeding company expectations,” the airline said, leading the New York airline to predict revenue for the current three-month period to be at the high end or above the high end of the previous directive of 11 to 16 percent compared. With the second quarter of 2019.
U.S. VP of Commerce Vasu Raja said at a conference on Thursday that the company would wait to see what happens to air travel over the long Memorial Day weekend, which he said would be “the first true indication of what summer might look like.” See. “
Despite the optimistic comments, US airlines continue to struggle with them Capacity constraints As the demand for air travel increases.
Earlier today, Delta cut its summer schedule by 2%, or 100 daily departures, mostly in the U.S. and Latin America, following similar announcements of rivalry earlier this year.
“It will build more resilience in our system and improve Operational reliability For our customers and employees, “the Atlanta-based supplier said in a statement. The cut will affect flight staff from July 1 to August 7.
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