Back travel stocks making hay in the US6 Feb 2025 17:25
Back travel stocks making hay in the US
FTSE 350 Review: While demand for travel will increase globally, those with European exposure have other issues to contend with
Back travel stocks making hay in the US
Published on February 6, 2025
by Christopher Akers
Flight demand continues to rise
Muted airline capacity growth to support pricing power
There were some striking performances in the travel sector last year, as fears over a slump after post-pandemic 'revenge spending' had worked its way through the system proved mostly unfounded. British Airways owner International Consolidated Airlines' (IAG) share price almost doubled, while InterContinental Hotels (IHG) and cruise line operator Carnival (CCL) each rose by around 40 per cent.
However, recent updates have given mixed demand signals – easyJet (EZJ) disclosed strong forward bookings but pointed to second-quarter weakness, while Premier Inn owner Whitbread (WTB) reported flat UK accommodation sales in its third quarter – which highlights that there isn't a straightforward outlook across the sector