US airlines sound bullish as bookings roar back

Airlines are back. That's the message major U.S. carriers are sending investors after grappling with coronavirus-induced uncertainty for two years. With travel demand roaring back after a setback due to the Omicron variant of the virus early in the year, American Airlines Group, United Airlines and Alaska Air Thursday said their revenue in the current quarter would surpass pre-pandemic levels even as their capacity remains below that of 2019. As a result, they all expect to be profitable in the quarter through June. Last week, rival Delta also forecast a return to quarterly profit, citing "historic" high bookings. "A pent-up demand wave for air travel is unraveling the long-term doom-and-gloom sentiment around major airlines," said Colin Scarola, vice president at CFRA Research. The pace of recovery in demand as well as the bullish outlook have helped airline shares pare losses suffered since the onset of the pandemic. The NYSE Arca Airline index is still down 32% from its levels in mid-February 2020 -- but has gained 37% since early March. CFRA on Thursday lifted its 12-month target price for United Airlines Holding Inc's shares by 37% to $63 after the Chicago-based carrier said it is on course to post the highest quarterly revenue in its history. While the surge in bookings is largely driven by leisure travelers, carriers said office repoenings and easing border restrictions have bolstered the outlook. <br/>