U.S. airline bookings slipped 2.3% month-over-month in May, marking the second consecutive monthly drop this year amid surging fares. On the other hand, 1,200 U.S. flights were canceled over the weekend due to lingering operational issues. Analysts believe the delays and cancellations might even worsen.
Despite relaxation in restrictions and red-hot summer travel demand, airline stocks have been under pressure as investors weigh the increasing odds of a recession and how aggressive the Federal Reserve will get to combat the rising inflation.
