Soaring Travel Stocks Risk Stalling as Pent-Up Demand Wanes
- Airline, hotel, cruise stocks on a rapid three-week rally
- Travel demand may fade after summer, limiting further gains
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Airline, hotel and cruise stocks have jumped since late May as consumers rush to travel, but the outlook for later this year is murky and higher interest rates may take their toll on the shares.
The S&P Supercomposite Airlines Index and the S&P Composite 1500 Hotels, Resorts & Cruise Lines Index are both near highs last touched in mid-2022, rising steadily in recent weeks. SkyWest Inc., Hawaiian Holdings Inc., Delta Air Lines Inc., Carnival Corp., Norwegian Cruise Line Holdings Ltd. and Royal Caribbean Cruises Ltd. have led the advances in both groups, with Carnival set to end this week at the top of the S&P 500.