Airline stocks gain altitude on solid travel demand, falling crude

Hawaiian Holdings

12/06/2023 16:51

** Commercial airline shares outperformed the broader market
on Mon amid tumbling crude prices and growing seat demand 
    ** The S&P 1500 Airlines index  .SPCOMAIR  was last up 2.1%;
all 10 constituents green, led by American Airlines  AAL.O ,
JetBlue Airways  JBLU.O , Southwest Airlines  LUV.N  and
Hawaiian Holdings  HA.O  
    ** WTI crude prices  CLc1  slid 3.1% ahead of the Fed's rate
decision on Weds, with worries over weak China demand and rising
Russian supply weighing
    ** Cruise operators could be part of the equation; notes
from JPM and BofA cite growing demand momentum in travel and
leisure sectors
    ** Up-to-the-minute data from the Transportation Safety
Administration (TSA) shows the volume of domestic travelers
passing through security over this most recent Fri-to-Sun period
totaling 7.7 million, 9.4% more than a year ago and 0.4%
stronger than in pre-COVID 2019
    ** Last month's CPI report showed airfares decreased in
April after 16 straight months of gains
    ** In addition, Morgan Stanley in research note on Mon cites
latest survey showing corporate travel budgets expectations
continue to "noticeably improve in 2023, with improvement
expected to continue into 2024"
    ** With today's move, SPCOMAIR up nearly 18% YTD, compared
with the S&P 500's  .SPX  >12% gain over the same time period

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 (Reporting by Stephen Culp)
 ((stephen.culp@thomsonreuters.com; 646-223-6076;))