Airline Stocks Gained in Premarket Trading

Tiger Newspress2022-03-15

Delta Air Lines,United Continental and Southwest Airlines rose between 3% and 5% in premarket trading.

Three major U.S. airlines raised their forecasts for current-quarter revenue on Tuesday, highlighting a recovery in air travel as the Omicron variant loosens its grip on the country.

Delta Air Lines Inc, United Airlines Holdings Inc and Southwest Airlines Co said demand for air travel was strong, allaying investor concerns about a hit to profit from rising fuel costs due to the Russia-Ukraine war.

Delta said it was expecting first-quarter adjusted revenue to be about 78% of pre-pandemic level, compared with 72% to 76% it had forecast earlier.

Southwest said it was expecting revenue to fall 8% to 10%, better than its previous estimate of a 10% to 15% fall.

United Airlines Holdings Inc said it expects a fall in first-quarter operating revenue to be at the "better" end of its prior forecast of 20% and 25% drop, compared with pre-pandemic levels.

The airline, though, cut its full-year capacity forecast due to rising fuel prices and aircraft delivery delays.

United now expects 2022 capacity to be down in high single digits versus 2019. It had previously cut capacity forecast in January.

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Comments

  • Pingu829
    2022-03-16
    Pingu829
    Up up and away!
  • JLKang
    2022-03-16
    JLKang
    Expected since oil price drop 
  • KSHoSG
    2022-03-16
    KSHoSG
    [Thinking] 
  • Toby_Chua
    2022-03-16
    Toby_Chua
    Oil retreat boost transport n airlines stocks
  • cwpang
    2022-03-15
    cwpang
    Good
  • frusty
    2022-03-15
    frusty
    Ok
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