Buckle up and put away your tray tables: US airline stocks are poised for take-off in 2022.
The industry endured a rough fourth quarter. Hopes for a recovery and the return of lucrative international travel were upended in the final weeks of the year. Bad weather and airline staffing shortages — fuelled by the spike in Omicron Covid-19 cases — forced airlines to cancel tens of thousands of flights.
Delta Air Lines, the first of the big airlines to release its results, revealed the extent of the damage on Thursday. The company lost $408m in the final three months of 2021 amid a 29 per cent decline in passenger revenue. The weakness, which followed two profitable quarters, has carried over to the new year. Delta said it expected to lose money again in the first quarter.