“It is good, but not totally surprising to see premium revenue growth outpacing main cabin, as the latter now has more difficult growth comps,” Trent said in his note. Delta earlier Thursday said it expects a pretax profit in the second half of the year, with leisure, business and trans-Atlantic travel driving an incremental demand recovery. Its recent share strength “seems disconnected with fundamentals,” he said.ĭelta’s second-quarter guidance was “generally positive,” Trent said. In contrast to rivals, however, “the carrier made no specific operational cost disclosures, it did not adjust its revenue guide and it is unclear whether cost management and possibly higher fuel prices moved the needle on the previous 2Q’21 pre-tax margin guide that had ranged between -27% and -30%,” Trent said. Trent kept his sell rating on American shares. ![]() The airline mentioned cash flow turning positive in May, positive trends for leisure travel, and some perking up for its business travel. It was mixed guidance, Stephen Trent with Citi said in a note Thursday. The ETF has gained 19% this year, and 56% in the last 12 months, compared with gains of 12% and 34% for the S&P 500 indexīoth American and Delta unveiled their outlooks for the current quarter, with American saying it still expect its capacity, as measured per total available seat miles, to be down 20% to 25% in the second quarter, and for revenue to be down about 40% compared with the second quarter of 2019, the year before the pandemic decimated travel. Shares of American Airlinesįell 2%, erasing earlier gains for the week and looking to end the shortened holiday week down 0.6%. United stock dropped nearly 3% by midday trading, with Delta Air Lines Inc. Passenger supersonic travel came to a halt in 2003 when British Airways and Air France retired the Concorde, amid high costs, concerns about noise, and the air travel slump that occurred after the Sept. That would mean, for example, from United’s Newark, New Jersey hub to London in three-and-a-half hours, and San Francisco to Tokyo in just six hours, the companies said. ![]() ![]() The aircraft would travel at twice the speed of today’s fastest airliners, and could connect more than 500 destinations in nearly half the time, the companies said. The planes are expected to carry passengers by the end of the decade. Related: Summer travel is back, but will it be enough to boost flagging U.S.
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