Southwest Airlines Co. and JetBlue Airways Corp. on Thursday gave upbeat revenue forecasts for the current quarter on strong travel demand, despite concerns that rising inflation may weigh on consumer spending.
U.S. airlines have been buoyed, and in some cases surprised, by how quickly travel snapped back from the depths of the COVID-19 pandemic, leaving them struggling to add capacity in part due to staff shortages.
As such, they have been able to raise ticket prices that have diminished the impact of higher fuel prices and elevated labor costs.
“The improvement in the company’s second quarter 2022 operating revenue guidance is primarily attributable to continued passenger yield strength,” Southwest said in a filing….