Today, airline stocks rose, with each of the three major U.S. airlines reaching its highest levels since the beginning of the year (YTD). United Airlines (NASDAQ:UAL), Delta Airlines (NYSE:DAL) in American Airlines (NASDAQ:AAL) rose between 3% and 6% in early afternoon trading.
This move seems to indicate that investors have a brighter outlook for airline stocks in 2022. Among those that could be the biggest jump in Covid-19 cases due to the omicron version, there is room for hope among those investing in names airlines. This is good, as this sector is currently facing a number of obstacles.
In addition to the pandemic, costs are also expected to rise this quarter. Higher fuel prices fueled by indiscriminate inflation are under pressure. In addition, some investors are concerned about the short-term revenues of airlines due to the number of canceled flights.
However, today there is a big catalyst that raises the “big three” airlines higher. Let’s delve into what investors are looking at with these stocks.
Shares of airlines rise with a positive profit report
Delta Airlines was the first to report profit in the fourth quarter in front of the bell today. Shares of all airlines rose amid news of the company’s strong numbers. Interestingly, Delta’s move higher today was the weakest of its kind.
Despite the above-mentioned obstacles, which Delta sees as problematic, this company has managed to secure solid prospects for the future. The company says its business has stabilized and demand for travel remains strong. Accordingly, Delta recorded the highest revenues and the number of provisions after 2019 in the last quarter.
For the DAL period reported revenue of $ 9.47 billion, exceeding analysts ’expectations of $ 9.21 billion. These results showed that holiday travel has returned in the past year; travelers are ready to return to normal.
Nevertheless, Delta’s chief executive was quick to point out that the next four to six weeks could cause some turbulence. Due to the seriousness of this latest wave of Covid-19, some travelers have rejected their travel plans for a few weeks. Nevertheless, the outlook for the coming months seems bleak and investors seem ready to look to the future with airline stocks. (I mean, you kind of have to).
At the time of publication, Chris MacDonald did not have (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author and are the subject of InvestorPlace.com Guidelines for publication.