Global airline shares soar high on passenger demand, cheaper fuel

Investors are pouring money into global airline stocks, with an index for the sector reaching its highest level in two years as post-pandemic travel demand recovers and fuel prices stabilize. The MSCI All World Stock Index for airlines rose to 97.44 points on Wednesday, the highest since June 2021. At the end of 2019, before the coronavirus pandemic devastated the industry, the index was around 120 points. Recovery has been slow, with the index dipping below 70 at times in fall 2022, but the current rebound appears stable. Wednesday's figure is a 19% improvement from the end of 2022, as airlines have outperformed the overall 14% rise in global stocks. The upward trend began in June, and the pace increased rapidly. Individual carriers also are hitting new highs one after another. Shares of US-based Delta Air Lines climbed to $49.04 on Wednesday, the highest in about 27 months. Indian low-cost carrier IndiGo's operator InterGlobe hit its highest price since going public in 2015. In late June, Japanese national carrier Japan Airlines posted its highest price since February 2020. China's major airlines are an exception, sinking to negative territory compared with the end of 2022 as the country's economy has stagnated even after pandemic travel restrictions were lifted. An increase in passengers for many carriers has helped airline stocks surpass global stock average growth. Japan's ANA Holdings told investors that domestic passenger demand during the summer period has nearly recovered to the pre-pandemic 2019 level. Reservations for international routes like Hawaii also have rebounded to about 80% to 90% of the 2019 level. Germany's Lufthansa sees a similar trend.<br/>