The US airline market has finally started to trend upwards.
ARC numbers confirm that that the recovery is under way. I want to caution that this is a slow recovery but it does seem people are getting back on the planes and flying. For the first time this year total ticket prices actually rose Y/Y,
BUT it is very fragile. For example in the run up to the holiday season - some flights particularly across the Atlantic started to trend upwards in yield. The airlines piled on the prices with average available prices on some routes exceeding the magic $1,000 mark. This collapsed with the 21 day advance purchase milestone passing the rates dropped radically.
The airlines and the intermediary community can start to rebuild.
The stock market has responded by boosting airline stocks. United for example has rised from lows in the $2 range to highs in the $9.It will go higher.
Christmas anyone?
Cheers
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