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Airline industry expected to soar with record summer travel
- June 1, 2024: Vol. 11, Number 6

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Airline industry expected to soar with record summer travel

by Frank Holmes

The airline industry is gearing up for what could be a record-breaking summer travel season, if forecasts turn out to be correct. Despite challenges such as the Boeing 737 MAX 9 grounding and aircraft delivery delays, airlines are reporting strong demand and growth, particularly in international markets. For investors, this could be an opportunity to gain exposure to a sector that’s poised for takeoff.

Not every carrier has reported results for the first quarter yet, but what I’ve seen has been encouraging. Delta Air Lines reported record quarterly revenue and expects continued strong momentum, targeting earnings of $6 to $7 per share and free cash flow of $3 billion to $4 billion for the full year. United Airlines, despite a pre-tax loss that’s largely attributed to the MAX 9 grounding, saw a $92 million improvement over the same quarter of 2023.

The big takeaway is that the U.S. economy and air travel remain healthy, with airlines experiencing record numbers of

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