Airline stocks get a lift from strong holiday weekend passenger demand

Investing.com — Airline stocks are getting a lift from surging passenger demand as the summer holidays unofficially kick off.

The Transportation Security Administration screened 9.8 million people who passed through airport checkpoints from Friday through Monday, up about 300,000 from Memorial Day weekend in 2019, before the pandemic hit the travel business.

Shares of United Airlines Holdings (NASDAQ:) rose 1.3% in Tuesday trading, while shares of American Airlines Group (NASDAQ:) were up 1.7%, Southwest Airlines Company (NYSE:) was up 0.8%, and Delta Air Lines (NYSE:) shares jumped 1.4%.

Friday was the busiest airport check day since the pandemic, with 2.74 million people passing through security lines, the TSA said.

Memorial Day demand could be seen as a harbinger for the season to come, when airlines are hoping to log strong demand despite higher ticket prices as people yearn to get away.

AAA had already projected that some 42.3 million Americans would travel over the long weekend by 50 miles or more from home, a 7% bump from last year. It said it was expected to be the third busiest Memorial Day weekend since 2000.