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☆ US airline stock valuations stuck on runway despite travel boom
▼ + stars: | 2023-07-12 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +4 min

REUTERS/Jim Vondruska/File PhotoCHICAGO, July 12 (Reuters) - Relentless travel demand has sent bookings at U.S. carriers soaring, translating into bumper earnings. Airline shares have suffered because of bearish sentiment about the broader economy as interest rates are up sharply and inflation remains high, analysts said. There are still no signs of air travel demand waning as ticket purchases for the rest of 2023 are up 4%, said Steve Solomon, ARC's chief commercial officer. Believers in airline stocks have seen signs of hope this year. Global Investors' Holmes said airline shares are poised for even more gains.

Persons: Jim Vondruska, Refinitiv, Jefferies, Sheila Kahyaoglu, TD Cowen, Frank Holmes, Steve Solomon, Hopper, Hayley Berg, Hopper's, airfares, Holmes, Rajesh Kumar Singh, Ben Klayman, Nick Zieminski Organizations: Chicago Midway International, REUTERS, Airline, US Global Jets ETF, United Airlines, Delta Air Lines, Airlines, Global Investors, U.S . Transportation, Airlines Reporting Corporation, ARC, airfare, Delta, American Airlines, Global, Thomson Locations: Chicago , Illinois, U.S, Europe, United

☆ Airfares tumble, helping bring down overall inflation.
▼ + stars: | 2023-07-12 | by ( Lydia Depillis | More About Lydia Depillis | ) www.nytimes.com time to read: +1 min

Airfares took another dive last month, following a wild ride over the past year, reflecting volatile energy prices and swings in demand. Prices have dropped 18.9 percent in the year through June, or 8.1 percent between May and June, even as passenger traffic has reached record highs. Ticket prices spiked last summer as Americans planned the vacations they were denied during the pandemic. Airlines have been hiring aggressively for all positions and adding flights, bringing capacity back up to prepandemic levels. And as energy prices have moderated, ticket prices have receded as well.

Persons: Airfares Organizations: Airlines

PinnedInflation data released on Wednesday showed a pronounced cooling and offered some of the most hopeful news since the Federal Reserve began trying to tame rapid price increases 16 months ago. But Federal Reserve officials are still trying to assess whether the cool down is likely to be quick and complete. Officials have signaled in recent weeks that they are likely to raise interest rates at their July 25-26 meeting. For one thing, the cost of housing as measured by the Consumer Price Index — which relies on rent prices — is coming down sharply. Interest rates increases work partly by slowing the job market and cooling wage increases, so the Fed’s fight against inflation and the strength of the labor market are closely tied.

Persons: ”, Laura Rosner, Warburton, it’s, . Rosner, Airfares, “, Beth Weaver, Loretta Mester, ” Julia Pollak Organizations: Federal Reserve, Federal, Consumer, Buick GMC, Fed, Federal Reserve Bank of Cleveland, ZipRecruiter Locations: Erie, Pa

PinnedInflation data released on Wednesday showed a pronounced cooling and offered some of the most hopeful news since the Federal Reserve began trying to tame rapid price increases 16 months ago. Officials have signaled in recent weeks that they are likely to raise interest rates at their July 25-26 meeting. For one thing, the cost of housing as measured by the Consumer Price Index — which relies on rent prices — is coming down sharply. The Fed officially targets 2 percent inflation on average over time, though it defines that goal using a separate inflation measure, the Personal Consumption Expenditures index. Interest rates increases work partly by slowing the job market and cooling wage increases, so the Fed’s fight against inflation and the strength of the labor market are closely tied.

☆ Fewer Americans are taking time off for vacation this summer, and it might be due to inflation
▼ + stars: | 2023-07-07 | by ( Juliana Kaplan | Madison Hoff | ) www.businessinsider.com time to read: +3 min

Fewer workers are taking time off for vacation or personal days, compared to last year. The following chart shows that the post-pandemic recovery in the number of workers taking vacation in June has stalled, with a slight drop from June 2022 to June 2023. To be sure, airline ticket inflation isn't as bad as it was last year. Even so, airline ticket inflation came in at 30.2% for all of 2022. When it comes to why fewer Americans are taking time off for vacation this summer, Acting Secretary of Labor Julie Su told Insider that it's "an important question."

Persons: Julia Pollak, —, who's, Bianca Giacobone, Hopper, Labor Julie Su, Su, Dan Latu, Ric Kenworthy, Latu, They're Organizations: Labor Statistics, Service, lastest Bureau of Labor Statistics, Labor Locations: lastest, Europe, Asia, Phoenix

Representative Blake D. Moore, Republican of Utah, is pushing for changes to federal law that would allow more nonstop flights between Ronald Reagan Washington National Airport and Salt Lake City. Those flights, he said, would increase tourism between Utah and the nation’s capital. They would also offer Mr. Moore a more efficient commute. “We need more direct flights out of DCA,” he said. In recent weeks, dozens of lawmakers have joined the push for 28 new round-trip flights per day at Reagan National.

Persons: Blake D, Moore, Ronald Reagan, ” Organizations: Republican, Ronald Reagan Washington National Airport, Capitol, Delta Air, Reagan National, Little League, Reagan Locations: Utah, Ronald Reagan Washington, Salt Lake City, Washington

Sicily isn’t the only European destination bustling with tourists ahead of the peak summer season in July and August. After three years of pandemic restrictions, travelers are flocking to Europe in record numbers, despite high airfares, limited accommodations, sweltering heat and crowded sites. Among American travelers, Europe is the most popular destination this year, according to Hopper’s “Summer Travel to Europe” report. “I had to sell my car to pull this off, but if I’m traveling this far, I’m going to see everywhere,” she said. But there was nothing, so, unfortunately, I had to turn down business,” said Abby Lagman, the founder of the Blissful Travel Company, a U.S.-based travel agency.

Persons: Hopper’s, ”, Elizabeth Hughes, “, Abby Lagman Organizations: Hopper Locations: Sicily, Europe, London, Paris, Rome, Lisbon, Athens, Sicilian, Palermo, Chicago, France, Italy, Greece, U.S

☆ Here’s how Americans are booking their summer trips this year despite inflation
▼ + stars: | 2023-06-22 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +1 min

Americans are eager to travel this summer despite inflation-strapped budgets. The overall price of travel is up 16% from this time in 2019, according to the NerdWallet Travel Price Index. Car rental prices peaked in July 2021, according to NerdWallet, and have been consistently declining. Moreover, more than 60% of adults intend to travel for the July 4 weekend. International travel is particularly popular this summer, primarily due to pent-up demand, as this is the first summer without Covid-related travel restrictions, Berg said.

Persons: Hopper, Hayley Berg, Read, Berg Organizations: Finance, Amazon

☆ Type-A Travelers Are Already Booking Primo Spots for Next Summer
▼ + stars: | 2023-06-21 | by ( Dawn Gilbertson | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/summer-vacation-2024-frequent-flier-flights-airfares-f8f3799

Persons: Dow Jones

☆ The Type-A Travelers Already Booking Their 2024 Vacations
▼ + stars: | 2023-06-21 | by ( Dawn Gilbertson | ) www.wsj.com time to read: 1 min

Persons: Dow Jones

☆ UK inflation stops falling as airfares and second-hand car prices soar
▼ + stars: | 2023-06-21 | by ( Olesya Dmitracova | ) edition.cnn.com time to read: +1 min

London CNN —UK inflation stayed stuck at 8.7% in May as prices for recreation and cultural activities rose at a faster pace than the previous month. The data released by the Office for National Statistics Wednesday defied forecasts for a slowdown in overall inflation to 8.4% compared with a year ago. Although the prices of groceries rose less sharply than in April, food inflation remained high, coming in at more than 18%. “The cost of airfares rose by more than a year ago and is at a higher level than usual for May,” said ONS chief economist Grant Fitzner. The latest figures make it more likely the Bank of England will raise interest rates again Thursday, threatening even more turmoil in the mortgage market.

Persons: ”, Grant Fitzner, Rishi Sunak Organizations: London CNN —, Office, National Statistics, UK, Bank of England Locations: Britain

Economists polled by Reuters had forecast that the annual consumer price inflation rate would drop to 8.4% in May, moving further away from October's 41-year high of 11.1%. "May's CPI figures ratchet up the pressure on the Monetary Policy Committee to increase Bank Rate substantially further over the coming months," Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said. Food and drink price inflation dropped slightly to 18.3% from April's 19.0%. The BoE is widely expected to raise interest rates on Thursday to 4.75% from 4.5%. After Wednesday's data, markets fully priced in interest rates reaching 6% by December - up from around a 50% chance of such a move on Tuesday.

Persons: Henry Nicholls, Samuel Tombs, Sterling, BoE, Grant Fitzner, . Paul Dales, Rishi Sunak, Jeremy Hunt, Andrew Heavens Organizations: Bank of England, REUTERS, Bank of, Reuters, Monetary, Committee, Pantheon, U.S ., National Statistics, ., Capital Economics, Bank, Fed, ECB, Thomson Locations: City, London, Britain, Bank of England

☆ TikTokers are using this Google Flights trick to book cheap airfare — here’s how it works
▼ + stars: | 2023-06-16 | by ( Jasmin Suknanan | Jason Stauffer | ) www.cnbc.com time to read: +11 min

However, TikTokers recently found a way to lower some of those travel costs, particularly when it comes to booking flights. The Google Flights "trick" is simple, but does require some flexibility in terms of where and when you're willing to travel. Here's how the feature works: Step 1: Open up your browser and type in Google Flights. Some TikTokers who posted about this trick have shown themselves finding flights to Cancun for $270 and Las Vegas for $94. Consider booking a flight with a layover While direct flights are convenient, flights with a layover often cost less.

Persons: it's, there's, TikTokers, You'll, you'll, Chase, Airfares Organizations: NerdWallet's, Google, Labor, New, Las, Chase, American, American Express, CNBC, Card, Delta, U.S . Supermarkets, CNBC Select's, Facebook, Twitter Locations: New York, New York City, Atlanta, Toronto, Cancun, Las Vegas, U.S, Italy

☆ Amid high inflation and pent-up demand, lower gas prices can help travelers save this summer. Here are some tips
▼ + stars: | 2023-06-16 | by ( Lorie Konish | ) www.cnbc.com time to read: +1 min

For those who hit the road to travel this summer, there is good news: Gas prices are substantially lower than they were last year. As of Friday, the national average for a gallon of gas is $3.58, down from $5 one year ago, according to AAA. Last year's high prices made headlines, and even prompted politicians on the state and federal level to call for gas tax holidays. And barring any surprises during hurricane season, the outlook for gas prices is mostly stable, Gross said. The national average will probably stay in the range of $3.50 per gallon, he said.

Persons: Andrew Gross, Gross, Ted Rossman Organizations: AAA, Finance, Auto

☆ Revenge Spending Helped Push Prices Higher. The Trend Is Turning.
▼ + stars: | 2023-06-13 | by ( Jeanna Smialek | ) www.nytimes.com time to read: +1 min

The nation witnessed two years of red-hot “revenge spending,” the name economists and corporate executives gave to a spike in recreational spending that followed coronavirus lockdowns. As demand rose, so did prices for airfares, hotels and other sought-after services. Hotel prices have recently climbed much more slowly on a year-over-year basis, and airfares are flatlining. If that trend continues this summer, it could contribute to a slowdown in overall services inflation, something the Fed has been watching and waiting for. “We see some slowing in so-called revenge categories,” said Yelena Shulyatyeva, senior U.S. economist at BNP Paribas.

Persons: coronavirus, ”, Yelena Shulyatyeva Organizations: BNP Paribas

The fresh data offer the latest evidence that the Fed’s push to control rapid price increases is beginning to work. Investors have been betting that Fed officials will leave rates unchanged at their meeting this week, breaking their long streak of increases. Even so, many investors continue to expect that Fed officials will restart rate increases in July. That “core” price index rose 5.3 percent in May compared with a year earlier. And price increases for goods excluding motor vehicles remained positive, instead of subtracting from inflation as some economists have been expecting.

Persons: “, ” Laura Rosner, Warburton, Airfares, Ms, Rosner, Jerome H, Powell Organizations: Federal Reserve, Fed, Mortgage, Association

☆ With these many jobs, do we no longer have to worry about a recession?
▼ + stars: | 2023-06-03 | by ( Chris Isidore | ) edition.cnn.com time to read: +7 min

But for every recession alarm bell, the continued strength in the labor market seems to be an answer to those worries. “I think even in a recession environment, we’re going to have a relatively strong job market. “It’s still possible that the case of avoiding a recession is, in my view, more likely than that of having a recession. Jobs market still hot, but coolingThat’s not to say that the jobs market hasn’t slowed down. Powell said he’s not particularly worried about the cooling of the labor market over the last year.

Persons: That’s, ”, Jamie Cox, they’re, Mark Zandi, “, I’ve, we’ve, Dave Gilbertson, Jerome Powell, “ We’ve, ” Powell, It’s, Julia Pollock, Powell, he’s, —, ZipRecruiter’s Pollock, – CNN’s Bryan Mena Organizations: New, New York CNN, Labor Department, Costco, Federal Reserve, Harris Financial Group, Moody’s Analytics, Target, Labor Locations: New York

☆ Where to go this summer: A dozen destination ideas
▼ + stars: | 2023-05-28 | by ( Marnie Hunter | Jane Levere | ) edition.cnn.com time to read: +8 min

Peru"Peruvians are welcoming travelers back with open arms," says travel one travel expert. And perhaps most importantly, the city offers excellent value, in part because it will be the winter/low season there during the Northern Hemisphere’s summer. It’s home to three UNESCO World Heritage Sites, including megalithic temples that date to the 4th millennium BC. Although summer is the rainy season, Gellis says showers are often brief and intermittent. AlbaniaAlbania is a Mediterranean gem that’s likely to be less crowded this summer than Greece and Croatia, says Joao Donadel, another EMBARK Beyond travel advisor.

☆ How to book a skiplag flight to save money — and why you shouldn't
▼ + stars: | 2023-05-27 | by ( Taylor Rains | ) www.businessinsider.com time to read: +6 min

"Skiplagging" is the practice of booking an airline ticket with the layover city intended as the destination. The strategy involves booking a flight with a layover intended as the destination city and then skipping the second leg. Founded by computer scientist Aktarer Zaman in 2013, the website helps customers find "hidden city" fares based on their preferred airports and destination. This did not bode well with Lufthansa, which identified the itinerary as hidden city ticketing and then requested about $2,400 from the customer as additional payment, according to court documents. American Airlines, for example, added new tools in 2021 to help agents recognize a hidden city ticket.

☆ Despite all odds, consumers are still traveling this summer. Here are the stocks you need to own
▼ + stars: | 2023-05-26 | by ( Michelle Fox | ) www.cnbc.com time to read: +11 min

Yet despite all odds, 61% of those surveyed said they plan to travel this summer, up from the 49% who said the same in summer 2021. Some 56% of adults are more likely to stay in a hotel this summer than they were in 2022, according to the AHLA/Morning Consult survey. Booking Holdings is also an analyst favorite, with an average rating of overweight and 10% upside to the average price target, per FactSet. While prices are still high, the latest consumer price index for April showed the airline fares index fell 2.6% month over month, after rising in February and March. Airlines are essentially sold out for summer travel, according to TD Cowen analyst Helane Becker.

Persons: Matt Kramer, They're, You've, Sylvia Jablonski, Kramer, Freed, Bernstein, David Vernon, Price, Robin Farley, Farley, James Hardiman, Hardiman, Josh Weinstein's, RevPar, Tony Capuano, Chris Nassetta, Biden, Hilton, they've, Airbnb, Brian Chesky, it's, Evercore, Mark Mahaney, amortization, Mahaney, Cowen, Helane Becker, Becker, — CNBC's Michael Bloom, Ashley Capoot Organizations: KPMG, KPMG Consumer, Survey, Cruise ETF, Royal, Holdings, Marriott, United Airlines, Morning, American, & Lodging Association, Cruises, UBS, Citi, CCL, CNBC, Hilton Worldwide, U.S . Travel Association, State Department, Booking Holdings, Booking, Airlines, Delta Air Lines, Copa Holdings, Panamanian, Copa Airlines Locations: United States, Royal Caribbean, United, Caribbean, CocoCay, Thursday's, China, North America, Asia, Europe

☆ Strikes, Delays and Lost Luggage: How to Survive Air Travel This Summer
▼ + stars: | 2023-05-25 | by ( Elaine Glusac | The New York Times | ) www.nytimes.com time to read: +27 min

Illustration by Yukai Du Strikes, Delays and Lost Luggage: How to Survive Air Travel This Summer With the travel season in full swing, we compiled a guide to help you navigate the year’s most hectic time in the skies. If you don’t care which beach, shop around.” If you haven’t booked summer flights, do it now. For one, avoiding the airports with the highest levels of delays and cancellations last summer may be a good idea. They’re also getting longer inside airport lounges, longtime havens from the masses clogging the terminals at peak times. Standard membership in Priority Pass, a network of 1,300 airport lounges, starts at $99 a year, with each visit costing $35 at that level.

Persons: Yukai Du, we’ve, haven’t, Hopper, What’s, ”, Laura Lindsay, Ted Rossman, Priceline, Mr, Rossman, Charlotte Douglas, Toronto Pearson, it’s, “, Carter Langston, Rhonda Lawson, C.B.P, you’ve, you’re, You’ll, Lawson, Emmanuel Macron, Tomasz Pawliszyn, Jamie Larounis, Larounis, they’re, SITA —, They’re, Eric Goldmann of Atlanta Organizations: Bureau of Labor Statistics, Google, Miami, JetBlue, Heathrow Airport, Amsterdam Schiphol, Gatwick, Air Canada, Labor, Newark Liberty International, La Guardia Airport, Kennedy Airport, Reagan, Miami International, Orlando International, Boston Logan International, Charlotte Douglas International, Toronto Pearson, Federal Aviation Administration, Washington , D.C, Customs, Western, Gulf, Phoenix, Transportation Security Administration, Global, Border Protection, Clear, PreCheck, Heathrow, Air, SNCF, U.S . State Department, Smart, Union, Travelers, New Tech, Airlines, Lufthansa, Siemens, Alaska Airlines, KLM, U.S . Bureau of Transportation Statistics, Apple, The Department of Transportation, American, Venture, Dallas Fort Worth International, JPMorgan Chase, Club, Chase Sapphire Reserve, Americas Locations: Europe, United States, Asia, San Francisco, Jacksonville, Fla, Miami, London, Amsterdam, U.S, La, New York, Washington, Charlotte, N.C, Newark, Orlando, Toronto, Sydney, Jakarta, Frankfurt, Munich, Heathrow, Washington ,, States, Denver, Seattle, Reno, Nev, Gulf Coast, Atlantic, Houston , New Orleans, Atlanta, Luton, T.S.A, ’, noncitizens, France, Britain, Italy, Germany, Berlin, Dutch, Swiss, Delta, United, Hong Kong, Dallas, Boston, North, Central, South America, Dallas , Newark

☆ US airlines thrown a curveball as consumer habits change post-pandemic
▼ + stars: | 2023-05-10 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +5 min

Even as the thirst for travel remains strong, the changing trends are driving up airlines' operating costs and hurting revenue. Travel demand has also softened on days in the middle of the week, but has strengthened on peak days. Frontier Airlines (ULCC.O) decided to slash flights on Tuesdays and Wednesdays by about 20%, citing weak demand. Delta Airlines (DAL.N) reported that bookings for trips inside 30 days were declining, while those outside 30 days were stronger. Last year, it denied boarding to more customers than American Airlines (AAL.O) and United, U.S. Transportation Department data shows.

☆ J.D. Power ranked airlines across 3 fare classes according to its annual customer satisfaction survey — see the results
▼ + stars: | 2023-05-10 | by ( Taylor Rains | ) www.businessinsider.com time to read: +5 min

JetBlue Airways, Delta Air Lines, and Southwest Airlines scored the highest among 11 North American carriers. Of the 11 carriers ranked, JetBlue Airways, Delta Air Lines, and Southwest Airlines earned the top spot for each respective category. Courtesy of JetBlueJetBlue Airways (893) Delta Air Lines (865) United Airlines (848) Alaska Airlines (833) Air Canada (830) American Airlines (826)Segment Average: 846Premium EconomyDelta Premium Select. Delta Air LinesDelta Air Lines (848) JetBlue Airways (840) Alaska Airlines (823) American Airlines (821) Air Canada (797) United Airlines (784)Segment Average: 820Economy/Basic EconomySouthwest Airlines cabin. Jimmy Rooney/ShutterstockSouthwest Airlines (827) Delta Air Lines (801) JetBlue Airways (800) Alaska Airlines (781) WestJet (777) Allegiant Air (775) United Airlines (770) Air Canada (765) American Airlines (764) Spirit Airlines (727) Frontier Airlines (705)Segment Average: 782

☆ The Slowdown in Inflation May Have Ended in April
▼ + stars: | 2023-05-10 | by ( Jeanna Smialek | ) www.nytimes.com time to read: +3 min

That plateau could come amid strong price increases for food, gas, used cars and car insurance. Although inflation has been gradually cooling, it remains too elevated for policymakers to be comfortable. Federal Reserve officials are likely to watch the April inflation report closely. There could be one silver lining from April’s numbers: Some economists expect a meaningful slowdown in services prices after stripping out food, energy and housing costs. Policymakers have been watching that trimmed-down measure for a signal of where price increases might go next.

☆ Travel won’t fully recover this year — but it will get close
▼ + stars: | 2023-05-08 | by ( Monica Pitrelli | Morgan Awyong | ) www.cnbc.com time to read: +3 min

The World Travel & Tourism Council says the global travel and tourism sector won't fully recover this year — but it will get close. The return of tourism jobsAnd this year, jobs in the travel and tourism sector will recover to 95% of 2019 levels, according to the report. In 2019, 334 million people worked in the travel sector — an all-time high, it said. By 2033, the WTTC forecasts the travel sector will employ some 430 million people around the world, representing nearly 12% of the global workforce. But "we can't expect that momentum to continue into 2023," according to a forecast published by the travel risk intelligence company Riskline.

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