According to reports and comments made by airlines on Thursday, demand for summer leisure flying has not been affected by high ticket prices and inflation.
Southwest increased its second-quarter revenue guidance due to strong load factors and an increase in bookings for summer travel.
Southwest now expects Q2 operating revenue to exceed the year before by 12% to 15%, up from last month's forecast of 8% to 12% improvement.
There was good news for shareholders in the regulatory filing. The carrier said it has reduced the number of canceled flights since the beginning of April.
The airline has upgraded its Q2 capacity guidance after canceling less than 2% of flights in May. The airline expects 2% to 3% more capacity in the second quarter than in the first.
The strong demand environment has led to an increase in revenue guidance from JetBlue. The airline had expected revenue to go up in the second quarter. Revenue would come in at or above the previous high end of guidance, according to the upgraded forecast.
Ahead of presentations at the Wolfe Research Industrials Conference on Thursday, both Southwest and JetBlue issued new guidance. At the conference, American, Frontier and Spirit offered bullish assessments of the demand environment without changing their revenue forecasts.
Demand for the airline product has never been higher and it continues to grow out there, according to American Airlines chief commercial officer Vasu Raja.
Frontier CEO Barry Biffle said it was the best environment he had seen in three decades.
The US Jets Global Exchange Traded Fund closed up 5.14%.
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