US airline stocks soar in 2024 on strong travel demand

Spirit Airlines

31/12/2024 17:16

** Shares of major U.S. airlines are set to end 2024 on a
high note, propelled by robust travel demand and overall
resilient prices 
    ** Carriers with long-haul international operations saw
increased interest in flying overseas due a stronger dollar and
high demand for premium offerings
        ** American Airlines  AAL.O  up ~26%, United Airlines
 UAL.O  up ~138%, Delta Air Lines  DAL.N  up ~51% in 2024, as of
Monday's close
    ** Budget carriers began to recover in the second half of
the year after a challenging first half due to excess capacity
and low pricing in domestic markets
        ** As of last close, Southwest Airlines  LUV.N  shares
up ~16%, JetBlue Airways  JBLU.O  up ~44% and Alaska Air  ALK.N 
up ~66%, YTD
        ** Despite a strong year for most carriers, 2024 also
saw discount carrier Spirit Airlines  SAVEQ.PK  go bankrupt
after aircraft groundings and a failed merger attempt led to a
debt pile-up 
    ** As of Monday's close, S&P 1500 airlines sub-index
 .SPCOMAIR  has surged by ~58% this year, outpacing benchmark
index S&P 500  .SPX , which saw gains of ~25%
    ** Airlines also expect 2025 to be another year of strong
travel demand

 (Reporting by Rupali Chaudhary in Bengaluru)
 ((Rupali.Chaudhary@thomsonreuters.com))