Shares of major U.S. carriers jumped on Tuesday after upbeat airfare data for July signaled improving pricing power for the industry, as airlines bring capacity in check to align with a soft demand environment.
Shares of legacy carriers United Airlines, American Airlines and Delta Air Lines jumped nearly 10% each, while budget rival Southwest Airlines gained 4% in afternoon trading.
Smaller peers Alaska Air and JetBlue Airways rose about 10% each and low-cost carrier Frontier Group surged 22%.
Data from the Labor Department’s Bureau of Labor Statistics on Tuesday showed airfares rose 4% in July after slipping 0.1% in June, marking their first increase in six months.
Uncertainty stemming from President Donald Trump’s sweeping tariffs and budget cuts has prompted travelers to curb discre