Reported 27 days ago
U.S. airlines are experiencing a resurgence in profits following a significant reduction in capacity, leading to an increase in airfares and stock performance. American Airlines has raised its profit forecast for the year, while Southwest Airlines reported unexpected profits and Delta is poised for a record fourth quarter. The NYSE Arca Airline index has outperformed the S&P 500, driven by a deliberate slowing of capacity growth and enhanced pricing power, which analysts believe will result in a multi-year profit growth trajectory for the industry.
Source: YAHOO