by Donald Wood
Last updated: 9:58 AM ET, Tue July 12, 2022
As major airlines in the United States begin reporting their quarterly results Wednesday, they are expected to showcase their strongest earnings since the pandemic's start.
According to Reuters.com, Transportation Security Administration (TSA) data shows passenger traffic in the U.S. is up around 18 percent this summer compared to 2021 and has averaged about 89 percent of the pre-pandemic levels since Memorial Day.
Despite rising interest rates, high fuel prices and inflation reaching a 40-year high, some aviation analysts are warning of a travel spending slowdown in the year's second half. Executives from the top carriers in the U.S. continue to have a positive outlook on the situation.
With strong pent-up demand and travel restrictions being lifted, carriers are betting on an increase in international traffic and corporate bookings to offset any slowdown in leisure bookings this fall.
The increase in short- and long-term demand has caused airlines to raise fares, allowing them to offset soaring costs associated with higher fuel prices and an overall increase in labor costs.
Earlier this week, the Director General of the International Air Transport Association (IATA) said that as long as jet fuel costs remain unstable and jump in price, so will airfares as they are passed along to consumers.
Frontier Airlines CEO Barry Biffle told Reuters that travel demand is only getting stronger and that the current airline environment is "the best environment we've ever had in the industry."
Delta Air Lines is expected to announce second-quarter financial results on July 13, while American and United will reveal their data on July 21.
Carriers across the U.S. have experienced a flurry of delays and cancellations this summer, with aviation executives passing the blame onto the Federal Aviation Administration (FAA) and the government agency saying airlines are responsible.
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