CHICAGO—Major U.S. airlines are enjoying the strongest travel demand in three years, yet investors will focus on how they are mitigating mounting inflationary pressures when they report quarterly earnings starting on Wednesday.
After a blip caused by the Omicron coronavirus variant, travel demand has roared back, with some airlines reporting the highest ticket sales in their history. U.S. passenger traffic has been averaging about 89% of the pre-pandemic levels since mid-February, according to Transportation Security Administration (TSA) data.
But jet fuel prices in North America have gone up by more than 30 percent in the past month, since Western countries slapped sanctions on Russian exports. Carriers also must pay more to attract and retain talent in a tight labor market.
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