Investors in the airline sector looking for unit revenue growth haven't seen as big as boost from fares as was expected heading into 2019.
Air fares trickled 0.1% lower in April on a month-to-month comparison, according to data compiled by the Bureau of Transportation Statistics. Fares have now been down two consecutive months, which wasn't wholly unexpected due to concerns in the industry of price gouging accusation amid lower supply from the Boeing 737 Max grounding and new competitions on certain routes.
Fares were up 3.5% in April compared to a year ago on an unadjusted basis.
The early read on May is that fares are on the way up after both American Airlines Group (NASDAQ:AAL) and Southwest Airlines (NYSE:LUV) fired off $5 increases each way in moves that were then followed by Delta Air Lines (NYSE:DAL), United Continental (NASDAQ:UAL) and Alaska Air Group (NYSE:ALK).
Related ETF: JETS
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