Despite volatility in energy prices and elevated inflation, the rising travel demand in summer led U.S. airlines to turn profitable in the second quarter. With summer coming to an end, the travel demand is expected to decline.
However, easing travel restrictions and high demand for cargo services should help the industry keep recovering. The global airlines market is expected to grow at a 12.7% CAGR to reach $744 billion by 2026. Therefore, popular airline operators American Airlines Group, Inc. (AAL) and Alaska Air Group, Inc. (ALK) should benefit.
