Delta Air Lines’ upbeat outlook fuels travel rally

Travel-related stocks are getting a lift on Thursday thanks to Delta Air Lines’ (NYSE:DAL) bullish quarterly results and the carrier’s upbeat outlook on travel trends.

Delta (NYSE:DAL) shares rallied to a 4-month high and pierced resistance at the 200-day moving average for the first time since March on a top- and bottom-line beat. The company also restored FY25 guidance, reflecting Delta’s “confidence in the business.”

While headwinds remain and discretionary consumer spending remains vulnerable to economic uncertainties, the industry remains resilient thanks to post-pandemic “reprioritization,” steady demand for international travel, major sporting events (FIFA World Cup, Los Angeles Olympics), and the expanded role of AI in travel planning.

According to a survey by U.S. Travel Association, spending on travel is expected to show a 4% increase from 2024 to $1.35 trillion.

With Delta’s (NYSE:DAL) results underscoring the improved outlook, competitors in the airline segment gained altitude in tandem, taking along the bulk of the travel sector amid renewed optimism towards summer travel and consumer spending on leisure.

Leading the advance is Expedia Group (NASDAQ:EXPE) with a 5% gain, followed by Norwegian Cruise Lines (NYSE:NCLH), and TripAdvisor (NASDAQ:TRIP), both higher by 4%. Global Business Travel Group (NYSE:GBTG) shares were up 3%, followed by Travel & Leisure (NYSE:TNL), an all-time high for Royal Caribbean (NYSE:RCL), and Carnival Corp (NYSE:CCL) with gains of 2% to 3%.

Other names getting a modest lift include Airbnb (NASDAQ:ABNB), Booking Holdings (NASDAQ:BKNG), and Viking Holdings (NYSE:VIK), also setting a record high on Thursday.