Travel stocks are trading sharply higher Wednesday night in the wake of Delta Air Lines' better-than-expected earnings report, a possible indication that consumers will continue to fly this year despite rising inflation., writes CNBC.
At 6:40 p.m., the Dow Jones is trading up 0.7 percent, the S&P 500 is up 0.9 percent and the Nasdaq Composite Index is up 1.8 percent. The travel sector is doing significantly better than the index overall and large increases are noted in several airline, hotel and cruise companies.
Delta Air Lines is soaring over 5 percent while American Airlines is surging closer to 10 percent.
Southwest Airlines added 6.8 percent and JetBlue rose nearly 4 percent. Aircraft manufacturer Boeing also performed strongly on Wednesday. The stock is up 3.5 percent, topping the Dow Jones index.
Furthermore, in the travel sector, booking services Expedia and Booking Holdings rose by 4.0 and 3.7 percent respectively. Home rental service Airbnb climbed 6.5 percent and Tripadvisor lifted 5.6 percent.
Hotel chains Hilton and Wynn advance 5.1 and 3.6 percent respectively, while Hyatt Hotels and Marriott both add over 6 percent.
Cruise companies Carnival Corporation, Royal Caribbean Cruises and Norwegian Cruise Line are rising between 4.5-6 percent.
