Why Delta Has Travel Stocks Flying Today
What Delta Air Lines (NYSE: DAL) said when it reported earnings today is reverberating throughout the travel sector. The quarterly report has Delta's stock on the rise this morning, and it's bringing other names along for the ride. As of 10:28 a.m. ET, Delta shares were 4.2% higher, while the stocks of fellow carrier American Airlines Group (NASDAQ: AAL) and cruise operator Carnival (NYSE: CCL) (NYSE: CUK) were up 8.2% and 4.5%, respectively.
The travel industry has seen a recovery from the pandemic come in fits and starts. Surges of the delta and omicron COVID-19 variants have held back the pace of a rebound in consumer travel. On top of that, rising energy prices have increased costs. But Delta said today that consumers are back to booking trips, and it has been enough to overcome the surge in fuel costs. While Delta still reported a $940 million net loss for the first quarter, it importantly said that it returned to profitability in March.
Source Fool.com
