US big 3 airlines see positive trends despite new challenges

Just as the COVID-19 crisis moves into a more manageable and endemic state, airlines are now facing fallout from the war in Ukraine and also the challenge of rising oil prices.

Even with the combination of Omicron (variant of the coronavirus), the war in Ukraine, and fuel price volatility, three of the largest US airlines - American, Delta and United - are encouraged by current revenue and demand patterns.

Despite those new challenges, the major US global airlines remain bullish on demand, reflected in all three recently anticipating that they will beat previous revenue guidance for 1Q2021.

They have opted to trim their 1Q2022 capacity guidance, driven in large part by the Omicron variant of COVID-19 that swept across the country in early 2022. They are also confident that they can recoup the increase in fuel prices without wiping out any of the current strength they see in demand.