JBLU - Airline bookings in U.S. show signs of cracking in latest data read
2023-05-15 08:19:02 ET
Airline bookings in the U.S. showed another pullback with credit card and debit card data from Bank of America indicating system net sales fell -0.4% for the week ending May 7 vs. the pre-pandemic 2019 level compared to +3.2% the week prior.
BofA analyst Andrew Didora noted volume decelerated sequentially (-8.3% vs 2019 compared to -5.3% prior week), while pricing showed only a minor downtick (+8.6% vs 2019 compared to +9% prior week). Of note, international booking trends continue to remain strong against domestic, while large corporate sales continue to lag. "The data remains sluggish, and trends have not seen the strong rebound the airlines discussed this earnings season," noted Didora on the weekly data update.
On the positive side, BofA'a airline breakdown also indicated visits to most airlines’ websites accelerated during the week ending May 7, with the exception of Delta Airlines ( DAL ), JetBlue Airways ( JBLU ) and Southwest Airlines ( LUV ) - which all lost altitude with website traffic totals.
Last week, data from Bureau of Labor Statistics showed airfares decreased in the month of April despite rising fuel costs for airlines and surging demand flagged by numerous carriers in what was taken by analysts as a potential sign of demand cracking.
Airline stocks premarket: American Airlines ( AAL ) +0.6% , Delta Airlines ( DAL ) +0.4% , Southwest Airlines ( LUV ) +0.4% , United Airlines ( UAL ) +0.5% , JetBlue ( JBLU ) +0.6% , Hawaiian Holdings ( HA ) +2.0% , Alaska Air Group ( ALK ) +0.1% , Allegiant Travel ( ALGT ) inactive, Spirit Airlines ( SAVE ) +0.5% , Mesa Airlines ( MESA ) inactive, SkyWest ( SKYW ), Sun Country Airlines ( SNCY ), and Frontier Group ( ULCC ) +1.2% .
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- American Airlines Vs. Southwest Airlines: Which Stock Is A Better Buy
- Delta Air Lines: A Relatively Bright Future
- Seeking Alpha's Quant Rating across all airline stocks
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Airline bookings in U.S. show signs of cracking in latest data read