Airline stocks are taking off.
That’s thanks in part to Delta (DAL), which just raised its earnings guidance for the June quarter, and for the full year. For the quarter, DAL now expects to post EPS of $2.25 to $2.50. That’s higher than the previously forecast range of $2 to $2.25.
All as the summer travel season gains momentum. So far, bookings for hotels and car rentals are up almost 30% from 2022 for travel between Memorial Day and Labor Day, according to AAA.
Airline tickets are up about 40% year over year, they added. Even the U.S. Transportation Security Administration (TSA) said it’s prepared to screen high volumes of passengers at airport security checkpoints nationwide this summer travel season.
“Not only will the roads be crowded but also airports, trains, and cruise lines,” says AAA Public Affairs Manager, Kara Hitchens. “The good news, for those planning a Great American Road Trip, is that the cost of travel will be the same or less than last year, especially given significantly lower gas prices.”
DAL last traded at $45.76 – up $2.62 on the day.