American Airlines, Delta, United and Alaska Air are predicting Q2 revenue will surpass 2019 levels.
All the major carriers expect to return to profit by June, with United on course for its biggest ever quarter.
That’s despite capacity constraints like staff shortages, delayed aircraft and doubled fuel costs.
Passenger demand is outpacing supply and boosting the industry's pricing power.
U.S. carriers also typically offset fuel cost increases with higher ticket prices.
So fares are up more than 50% year-on-year, according to data from Cowen.
The pace of the recovery and bullish industry outlook are also boosting shares.
The NYSE Arca Airline index is 32% lower than early 2020, but it’s gained 37% since early March.
Leisure travelers, office reopenings and easing border restrictions are driving the surge.
But some analysts worry that rising fares and inflation may yet dent travel spending.
Source: Reuters