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Investing.com — Airline stocks surged on Tuesday as falling oil prices stoked hopes for lower costs for the carriers down the line.
American Airlines Group (NASDAQ:AAL) boosted the group by saying its second-quarter revenue would come in above pre-pandemic levels, sending its shares up 11%. Other airline stocks followed, including United Airlines Holdings Inc (NASDAQ:UAL), up 8%, and Delta Air Lines Inc (NYSE:DAL), up 7%.
The industry has been trying to get a grip on surging demand as it continues to battle staffing issues internally and at airports and air traffic control towers, which are all affecting the ability of airlines to snap back to pre-pandemic normal. Heathrow airport in London on Tuesday asked airlines to stop selling tickets as it tries to limit outbound passengers to 100,000 daily through mid-September. More than that, it said, the airport’s baggage handling, ground crew and other staffing and services could find themselves overwhelmed.
But Americans continue to plan their vacations and take to the skies despite the warnings about delays and cancellations. From Friday through Sunday, 6.82 million people passed through security checkpoints, according to the Transportation Security Administration, nearly back to 2019 levels.
The U.S. Global Jets ETF (NYSE:JETS), tracking major airlines, is up 4% on Tuesday, but still down 19% for the year.
