- The U.S. airline sector is on track to open higher despite the broad market decline after fare data comes in positive and Delta reports earnings.
- U.S. airline fares rose for the third straight month with a 1.0% month-over-month gain in September on an adjusted basis .
- The 1.0% mark follows a 2.7% rise in July and 2.4% increase in August.
- The increase in air fares and ancillary fees amid strong travel demand is helping to offset higher fuel costs for airline companies. Earlier today, Delta said it expects a profit of about $5B this year, despite a $2B increase in annual fuel costs.
- Keep an eye on the airline sector today amid the market turbulence. Delta is up 2.4% in premarket action, while American Airlines is 2.1% higher and Southwest is showing a 1.1% gain. United Continental is up 2.2% and JetBlue is managing a 0.4% gain against a broad market showing red almost across the board.
- Related stocks: LUV, UAL, DAL, AAL, MESA, JBLU, ALK, HA, SAVE, ALGT, SKYW.
- Related ETF: JETS.
- BLS CPI data
- Previously: Delta +1% after strong earnings (Oct. 11)