Travel rebounds are becoming even stronger than airlines expected and are helping to compensate for rising fuel prices. Southwest Airlines and JetBlue Airlines said Thursday that second-quarter earnings are expected to exceed their expectations.
This announcement is the latest sign that people are more and more planning leisure and business trips, despite the increasing number of cases of coronavirus across the country. Many travelers also do not seem to be bothered by the high prices of tickets, hotel rooms and car rentals. According to travel booking app Hopper, flights booked in the United States this weekend averaged $ 394, up 28% from the same weekend in 2019.
Southwest Airlines said in its securities filing that revenues from April to June are expected to increase by 12-15% from the same period in 2019, with previous forecasts increasing by 8-12%. Fuel prices are expected to be 5-11% higher than previously expected, but the increase in revenue will “more than offset” the rise in costs, airlines say. Based on current trends, Southwest Airlines said it “expects solid and operating profit” in the second quarter and other years.
JetBlue also said the business is improving and that record revenues are on track this summer. Ticket bookings are higher than airlines expect, and revenue for the quarter is expected to exceed previous estimates. According to the airline, revenue per seat per flight mile is expected to be more than 20% higher than in the second quarter of 2019.
United Airlines issued a similar update last week. According to the company, revenue per mile in the second quarter was projected to increase by 23-25% compared to the same period in 2019. United previously predicted a 17% increase.
Last month, United’s CEO Scott Kirby, Explain flight demand “It was the strongest in the industry in 30 years.”
According to a recent analysis by the Adobe Digital Economy Index, consumers spent an estimated $ 4 billion on domestic flights in the first half of May, an increase of 5% compared to the second half of April. US airline. Bookings increased by 2% between the last 15 days of April and the first 15 days of May. Analysis shows that sales and spending in May increased compared to a similar period in 2019.
Delta expects to fly 2.5 million passengers on Memorial Day weekend, up 25% from the same weekend last year, but less than 2.8 million who flew on the same weekend in 2019. I said there is. Trim flights this summer to prevent flight delays and cancellations that plagued airlines last year.
Bad weather, air traffic control disruptions, understaffed vendors, and coronavirus quarantine have “operated inconsistently with Delta’s standards,” said Allison, airline’s chief customer experience officer.・ Ausband said in a statement. Delta plans to reduce about 100 flights daily from July to the first week of August, reducing schedules by 2%.