Jet Fuel Demand Promising as Boeing and Southwest Airlines Report Profitable 2nd Quarter

With a lot of market uncertainty right now because of the COVID-19 delta variant, some great news came from Boeing today reporting their first positive quarter in over a year.  In the second quarter of 2020, they had a net loss of $2.96 billion. This year’s second quarter Boeing  reported a profit of $567 million.  A positive sign for the economy as well as jet fuel demand.

Boeing’s commercial sales were 6.02 billion in the second quarter, up 270% compared to last year at the same time, led by big orders from customers like United Airlines and Southwest Airlines. CEO Dave Calhoun said the following on Wednesday, “While we still have a ways to go before a full rebound, it is encouraging to see the commercial market improving, enabled by continued vaccine distribution and increasing travel demand, particularly in domestic markets.”  Boeing defense revenue also increased in the second quarter to 6.88 billion.

Southwest Airlines reported that monthly passenger traffic, was its highest since June of 2019. Also reporting a second quarter net income of $348 million, compared to a loss of $915 million in the same quarter last year.  The highest increase for Southwest has been in leisure revenue, which is anytime someone travels to visit friends and relatives or go on vacation.  While, business travel is lagging still, they have seen a recent increase.

Earlier today, the UK government announced it is going to relax restrictions on United States and European Union travel.  Starting August 2nd, US fully vaccinated passengers will not have to quarantine on arrival to England. President Biden recently commented that he is making plans to possibly end restrictions that bar most European visitors from entering the United States.

 

 

Southwest Airlines travel demand rises above 2019 levels (yahoo.com)

Boeing (BA) 2Q 2021 earnings: First profit since 2019 (cnbc.com)

Airlines rally as Britain set to relax US and EU travel rules (yahoo.com)

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