Dallas-based Southwest said it expects second-quarter revenue to grow by 12 to 15 percent © AP
Airlines ’shares rose as investors were encouraged by optimism about summer travel after U.S. airlines Southwest Airlines and JetBlue Airways raised their guidelines for the second quarter.
Shares in the Southwest rose 6 percent, while JetBlue rose 3.4 percent on Thursday.
The more optimistic outlook helped boost the sector, with shares of American Airlines and United Airlines rising 7% and Delta Air Lines nearly 6%. The broader NYSE Arca Airline index advanced 5.3%.
Dallas-based Southwest said it expects second-quarter revenue to increase by 12 to 15 percent in the same period in 2019, before the pandemic arrives, compared to its previous estimate of 8 percent. at 12 percent.
JetBlue’s bookings were “exceeding the company’s expectations,” the airline said, prompting the New York-based company to predict that revenue for the current three-month period was at or above the highest end of its previous orientation of 11 to 16 percent by comparison. with the second quarter of 2019.
U.S. Commercial Director Vasu Raja told a news conference on Thursday that the company would look forward to seeing what happens to air travel during the long weekend of Memorial Day, which he said would be the “first real indication of how it could be summer, “he said, adding that the carrier is” excited by what we see. “
Despite optimistic comments, US carriers continue to struggle with capacity constraints as demand for air travel increases.
Earlier in the day, Delta cut its daylight saving time by 2 percent, or 100 daily departures, mostly in the U.S. and Latin America, following similar announcements from rivals earlier this year.
“This will create additional resilience to our system and improve the operational reliability of our customers and employees,” the Atlanta-based company said in a statement. The cuts will affect the list of flights from July 1 to August 7.