Airline stocks are off and flying in the opening hour of trading.
United Continental (UAL +11%) is leading the charge after reporting it saw per-seat revenue rise 12.5% in December.
An oddity of the airline industry is that mass cancellations sometimes improve performance metrics as the percentage of filled seats improves for flights flown.
The rest of the sector is buying into the theory as well: Alaska Air (ALK) +4.5%, American Airlines Group (AAL) +5.9%, Delta Air Lines (DAL) +4.8%, Southwest Airlines (LUV) +2.1%, Hawaiian Holdings (HA) +1.3%.
Airline stocks shoot higher as the sector continues to see the pieces fall into place for higher profits (Previous: IATA forecast).
Lower fuel costs and higher fares are lining up just as the industry looks settled for a period of tight capacity discipline. It's already been a banner year for a number of airline stocks which have put in audacious gains.
The squeaky wheel gets the grease as the U.S. House votes to approve a bill to end the furlough of FAA employees. Those that bought airline stocks (FAA) on Monday when overwrought reports of long delays at U.S. airports rattled the sector made a good call.
Morgan Stanley advises taking profits on airline stocks (FAA) after the impressive rally in the group with oil prices falling and fares holding. The sector is seeing a bit of a pullback today with United Continental (UAL -2.7%) and Delta Air Lines (DAL -1%) faltering the most, but performance is still strong for the year.
Hawaiian Holdings, Inc., through its subsidiaries is engaged in the scheduled air transportation of passengers and cargo amongst the Hawaiian Islands, between the Hawaiian Islands and certain cities in the United States.