Ahead of the fourth of July holiday weekend, travelers at Hartsfield-Jackson Atlanta International Airport on June 30, 2023, in Atlanta, Georgia, were faced with flight disruptions. Despite this, airline investors have remained unfazed.
Between June 24 and July 2, U.S. airlines experienced delays in over 63,000 flights, accounting for 30% of their schedules. Additionally, over 9,000 flights, or 4.2%, were canceled. These percentages are higher than the disruption averages for this year, as reported by flight-tracking site FlightAware.
The series of rolling thunderstorms, combined with a shortage of air traffic controllers in congested airspace around New York and other areas, contributed to the delays. Thousands of travelers saw their plans disrupted, disrupting what had been a relatively peaceful spring for travel.
However, despite these challenges, the demand for air travel remains strong. This is evident in the Transportation Security Administration’s record-breaking screening of nearly 2.9 million people on Sunday. Passengers are eager to book flights and make up for lost time after the halt in travel caused by the Covid pandemic.
American Airlines and Delta Air Lines have recently raised their profit outlooks due to strong bookings, and lower fuel prices from last year have also benefited the industry.
While airline stocks continue to rise, second-quarter results and summer outlook reports will provide a more comprehensive understanding of the financial impact of the disruptions in late June and early July.
Airline stocks rise
Major U.S. carriers’ stocks have outperformed the broader market this year.
United Airlines and Delta have seen gains of 46% year-to-date, while American Airlines is up 42%. In comparison, the S&P 500 has gained 16% over the same period. Delta and United have reached their highest levels since June 2021.
Southwest Airlines, which faced a first-quarter loss due to disruptions in 2022, has seen a 10% increase in stock value this year.
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Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
