SABR - Why Airlines and the Companies That Serve Them Are Flying High Today
2023-05-17 17:40:47 ET
U.S. aviation regulators are forecasting that air travel over the upcoming Memorial Day weekend will match pre-pandemic levels, an indication that the summer travel season will get off to a busy start. Several airlines and related companies are taking off on the news, with shares of Delta Air Lines (NYSE: DAL) and Hawaiian Holdings (NASDAQ: HA) up more than 6% and 9% and travel software stock Sabre (NASDAQ: SABR) up 10%.
Airline stocks have enjoyed a nice rebound from pandemic-era lows, but the industry is still trying to hit the heights it enjoyed prior to COVID. Even in the face of economic weakness and uncertainty about a recession, investors are hoping for big things this summer, with pent-up demand for vacation travel continuing through the traditional holiday months.
The Federal Aviation Administration expects the summer travel season to get off to a strong start. The agency is forecasting 313,000 flights over the seven-day Memorial Day holiday period, up 4.5% from a year prior and just below 2019 numbers.
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Why Airlines and the Companies That Serve Them Are Flying High Today