Why Discount Airlines Frontier, Sun Country, and Allegiant Are Flying High This Week
Frontier Group Holdings (NASDAQ: ULCC), the parent company of Frontier Airlines, reported third-quarter results on Wednesday that largely put to rest investors' fears that it would experience turbulence amid an economic slowdown. The market reacted by bidding up shares of both Frontier and its discount airline peers.
Shares of Frontier traded up as much as 24% for the week through mid-afternoon Thursday, according to data provided by S&P Global Market Intelligence, while shares of Sun Country Airlines Holdings (NASDAQ: SNCY) were up 16% and Allegiant Travel (NASDAQ: ALGT) stock gained 12%.
Airline investors went into earnings season unsure about what to expect. On one hand, airports and planes continue to be packed with passengers eager to get away after a prolonged pandemic pause in travel. But fuel costs have skyrocketed, labor costs have also risen, and there was at least some reason to be concerned that inflation fears could cause many consumers to delay big-ticket purchases like airline tickets and vacations.
Source Fool.com
