US carriers fly in the stock market despite cancellations
Investors expect global travel demand to rebound in 2022
In the 2021 the stock market value of US air carriers plummeted as a result of the coronavirus pandemic, which forced thousands of aircraft and millions of passengers to ground due to tight border closures. Southwest Airlines and Spirit Airlines lost 8% and 10% respectively, while Delta Air Lines and JetBlue managed to limit the damage. Now something has changed for the better. This is what emerges from the trend of the shares of Delta Air Lines, American and United Airlines.
What has happened? Investors are betting on a rebound in travel by the end of the year. Analysts at Mkm partners, for example, are particularly optimistic about the companies' shares as they predict a global recovery in air travel demand by the end of this year that has just begun. In fact, according to experts, the next 12 months in the United States will reach the volume of passengers carried in 2019. Investors are betting especially on Delta, Alaska, American and United.
And this despite the more than 19 thousand flights cancelled in the last 10 days, starting with the Christmas holidays. In short, the Omicron variant is likely to affect the companies' financial results during the first quarter of 2022, however as soon as countries relax travel restrictions, international flights will resume at an unprecedented pace. The analysts' prediction espouses that airlines are desperate for pilots, to whom they are offering triple pay so they don't have to cancel flights due to staffing shortages.
AVIONEWS - World Aeronautical Press Agency