BUZZ-US airline stocks soar in 2024 on strong travel demand
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))
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