Travel returns to pre-pandemic levels, but some airlines and other industry-related companies struggle – Airbnb (NASDAQ:ABNB), Boeing (NYSE:BA) | Tech US News


According to TSA checkpoint travel numbers, flights returned to pre-COVID-19 highs for the fall compared to 2019. Meanwhile, the Bureau of Labor Statistics reported that airfares increased 43% year-over-year for the month of September. .

A tough first half of the year due to pilot shortages, delays, flight cancellations and high fuel prices left airlines with no choice but to cut the number of flights they offered. Airlines have also been selling higher fares to cover high summer jet fuel prices.

What does this mean for airlines and other travel providers?

Profit and Pivoting: Bob JordanCEO of Southwest Airlines Co LUV said that “demand for leisure and business remains strong, and we currently expect revenue trends to improve sequentially from the third quarter to the fourth quarter of 2022, despite lower capacity.”

In the third quarter, Boeing Co B.A delivered 112 commercial aircraft during the quarter with a backlog that included more than 4,300 aircraft valued at $307 billion. The backlog of orders Airbus SE EASY rose to 7,294 commercial aircraft by the end of September 2022.

More aircraft orders are coming in from most of the major airlines like Delta Air Lines, Inc. DAL, United Airlines Holdings Inc WELL and Southwest, which expects its first quarter 2023 flight schedule capacity to increase approximately 10% and second quarter 2023 capacity to increase approximately 14%, both year-over-year.

Spirit Airlines Incorporated SAVE was flying its planes two hours less than usual, while Southwest reported it could fly 5% to 8% longer, but staffing problems for pilots were affecting all major planes, the Wall Street Journal reported .

Read also: What Delta’s earnings and CPI inflation data reveal about the airline industry

Travel Industry Challenges: Despite macroeconomic headwinds, Airbnb Inc ABNB had its biggest and most profitable quarter yet, with nearly 100 million nights and experiences booked, up 25% year-over-year, and $15.6 billion in gross booking value, up 31% year-over-year.

While both Hilton Hotels HLT e Marriott International Inc MAR they slightly beat their consensus on third-quarter earnings, both of which missed revenue estimates incrementally.

Online travel agency Expedia Group Inc EXP posted a decent quarter of earnings. But margins are depressing, with lodging accounting for 80% of its total revenue, up 25% year-on-year, driven mainly by 20% growth in room nights.

TripAdvisor TRAVEL the world’s largest online travel platform missed earnings by consensus action. Additionally, total revenue of $459 million was up 51% year-over-year, while net revenue of $25 million improved from net revenue of $1 million in the third quarter of 2021. TripAdvisor had expected a moderate revenue decline of Tripadvisor Core as a percent of 2019 from the third quarter, due to an abnormally strong August.

Luxury and freestyle cruise company Norwegian Cruise Line Holdings Ltd NCLH The earnings surprise estimates included total revenue per cruise passenger day that beat expectations, rising roughly 14% in the third quarter of 2022 compared to the same period in 2019.

As this cruise line outperforms the trend, Norwegian expects occupancy to be in the mid-high 80% range for Q4 2022, and adjusted EBITDA for H2 2022 is expected to be slightly positive.

Photo: Iryna Rasko via Shutterstock


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