Bank of America pointed to data showing that orders from the U.S. airline industry are rising strongly. The bank believes the phenomenon supports the positive ethics shown by airlines in their latest passenger forecasts and revenue guidance, Bank of America said that airlines' net sales rose significantly in the week ended March 13, down only 15.4% compared to 2019, compared with a 25.4% decline in the previous week. This gap is the lowest week since the beginning of the pandemic.
In addition, orders and prices for leisure activities in the U.S. were higher than in 2019, while orders for small businesses exceeded 2019 levels for the first time since the pandemic. In the short term, demand remains very strong and appears on track for the first time in more than two years that demand exceeds supply.
As for bookings for international flights, the bank's analyst Andrew Didora and his team said that the impact of the situation in Ukraine and Russia on international orders is small, and demand for European travel is expected to remain strong this summer.
Meanwhile, Bank of America noted that JetBlue (JBLU. US) and Loyalty Travel (ALGT. US) has seen a significant increase in visitor traffic to its website, and the number of inquiries is seen as a leading indicator of order volume.
The following airlines are listed on the US stock market:
American Airlines (AAL. US), Delta Air Lines (DAL. US), Southwest Airlines (LUV. US), United Airlines (UAL US), JetBlue (JBLU US), Hawaii Holdings (HA. US), Alaska Airlines (ALK. US) Tadamai Travel (ALGT. US), Elf Airlines (SAVE. US), Mesa Airines (MESA US), Western Air (SkYW.US), Sun Country Airlines (SNCY), Frontier Group (ULCC. US).