LTM

Delta and United Airlines Performance: Delta Air Lines reported strong second-quarter earnings, exceeding expectations with revenues of $16.65 billion, while United Airlines had mixed results with earnings surpassing estimates but revenues falling short.

Growth in Latin American Airlines: LATAM Airlines and Copa Holdings showed significant growth in passenger traffic, with LATAM reporting a 10.2% increase in revenue passenger-kilometers and Copa Holdings experiencing a 6.3% rise in revenue passenger miles due to high demand.

Allegiant Travel Company Performance: In May 2025, Allegiant reported a 10.2% increase in scheduled traffic compared to May 2024, but the load factor decreased to 80.3% due to a larger capacity expansion of 16.3%. Total departures rose by 16.2%, and the company carried 9.4% more passengers overall.

Other Airlines' Traffic Reports: Copa Holdings saw a 7.5% rise in revenue passenger miles and increased its capacity by 7%, resulting in a higher load factor of 87.6%. Volaris reported a 3.5% increase in consolidated traffic but a decrease in load factor to 81.8%, while LATAM Airlines experienced a 9.6% rise in traffic and a load factor increase to 83.1%.

Positive Outlook for Airline Industry: The easing of the Israel-Iran conflict has led to lower oil prices, benefiting airlines by reducing fuel costs. The International Air Transport Association (IATA) projects record passenger revenues in 2025, indicating a strong recovery and growth potential for companies like LATAM Airlines, Copa Holdings, and SkyWest.

Financial Strength and Shareholder Returns: Airlines are increasingly returning cash to shareholders through dividends and buybacks as economic conditions improve post-pandemic. Delta Air Lines recently raised its dividend by 25%, reflecting confidence in financial stability, while labor cost increases pose challenges for profitability.