U.S. airline stocks rose Tuesday as the July consumer price report showed airfares rose 4% in the month, after months of price declines. Airline-stock investors endured a bumpy ride to start the year. Things are a bit smoother now. Shares of United Airlines (UAL), Delta Air Lines (DAL), American Airlines Group (AAL), Alaska Air Group (ALK), and JetBlue Airways (JBLU) all soared on Tuesday. The US Global Jets exchange-traded fund (JETS) also climbed, and is now roughly flat year-to-date after declining through the spring. The July consumer price report released early Tuesday helped carriers stick the landing. It showed airfares rose 4% in last month, breaking a streak of declines. Jet fuel prices, meanwhile, have fallen to start August. Trade tensions, declining consumer confidence, weather conditions, and general uncertainty were cited as headwinds for the airline industry earlier in the year; the International Air Transport Association in June trimmed its annual net profit estimate for the sector. The industry outlook now looks more stable, with carriers having mostly restored their earnings guidance after pulling the forecasts earlier this year. There are outliers in the group. Spirit Airlines (FLYY), which emerged from Chapter 11 bankruptcy in March, on Monday said that the company continues to be affected by 'adverse market conditions,' including weak domestic leisure travel in the second quarter and a 'challenging' price environment, according to a company filing. Spirit Airlines' management also issued a 'going concern' warning in the filing, saying they had 'substantial doubt' in the airline's ability to continue operating within the next 12 months. Its stock was down 40% on Tuesday.

Airline Stocks Take Flight, Rising Above Cloudy Early-Year Outlooks

U.S. airline stocks rose on Tuesday following the release of the July consumer price report, which showed a 4% increase in airfares after months of declines. This positive data helped stabilize investor sentiment, leading to gains for major carriers including United Airlines, Delta Air Lines, American Airlines Group, Alaska Air Group, and JetBlue Airways. The US Global Jets ETF (JETS) also climbed and is now roughly flat year-to-date. Jet fuel prices have fallen in August, contributing to improved conditions. The industry faced headwinds earlier in the year due to trade tensions, declining consumer confidence, weather issues, and uncertainty, prompting the International Air Transport Association to reduce its annual net profit forecast. Carriers have since restored earnings guidance. Spirit Airlines, however, continues to face adverse market conditions, including weak domestic leisure travel and a challenging pricing environment, and issued a 'going concern' warning with substantial doubt about its ability to operate for the next 12 months, leading to a 40% drop in its stock price.