But mounting economic worries are unsettling their investors, who are looking for clues to gauge the strength of consumer demand beyond the busy summer travel season.
Inflation at a 40-year high and rising interest rates have raised the specter of an economic recession in the United States. With air fares also surging, some analysts are warning of a slowdown in travel spending in the second half of the year.Those worries have battered airline shares even as booming travel demand is driving up the industry's revenue.has fallen 25% since late May. In contrast, U.S.
Analysts at Jefferies are not sure if the demand will remain as strong in the fall. In a note, they said airline revenue is expected to "materially weaken" in September following a moderation in leisure travel demand. Airline chiefs, however, have played down those concerns. They are betting healthy U.S. household savings as well as strong pent-up demand will help fill flights.