Shares of U.S. airlines surged Tuesday after Labor Department data showed July airfares rose for the first time in six months, signaling improved pricing power as carriers trim capacity to match softer demand. The gains come amid industry efforts to protect margins following months of fare discounts. Airfares rose 4% in July after a 0.1% decline in June, according to Bureau of Labor Statistics data. United Airlines, American Airlines, and Delta Air Lines each jumped nearly 10% in afternoon trading. Southwest Airlines gained 4%, while Alaska Air and JetBlue Airways rose about 10% each. Frontier Group surged 22% on the news. Carriers have reduced seat capacity and adjusted routes to sustain pricing strength. Airline executives in July earnings calls expressed confidence in boosting fares through year-end. Relevant Companies: UAL - Benefiting from improved airfare pricing and capacity adjustments. AAL - Gains tied to stronger pricing power amid reduced seat supply. DAL - Shares up sharply on signs of recovering margins from higher fares.

U.S. Airline Stocks Surge as July Airfare Data Shows First Increase in Six Months

U.S. airline stock prices rose following Labor Department data showing a 4% increase in July airfares, the first rise in six months after a 0.1% decline in June. The improvement in pricing power, driven by carriers reducing seat capacity and adjusting routes to match softer demand, has boosted investor confidence. United Airlines, American Airlines, Delta Air Lines, Southwest Airlines, Alaska Air, JetBlue Airways, and Frontier Group all saw significant share gains, with Frontier Group rising 22%. Industry executives expressed confidence in maintaining and increasing fares through the end of the year.