(Reuters) – Leisure airline Allegiant Travel Co said on Friday bookings beyond the summer travel season were trending above pre-pandemic levels, an early sign that demand was holding steady in the face of rising inflation.
The U.S. airline industry has been bullish about its prospects this year, with Delta Air Lines Inc and United Airlines saying that a switch in consumer spending to services from goods would keep their businesses humming despite the highest price pressures in four decades.
“Demand strength continues to persist with forward bookings outpacing future capacity growth,” Allegiant said in a statement.
But the airline expects current-quarter revenue to be at the low end of its previous forecast as a rise in COVID cases starting in mid-May forced it to cancel some flights.
Operating revenue for the second quarter will likely rise about 28% from pre-pandemic levels, compared with a prior view of a 28% to 32% rise, it said.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Aditya Soni)
