US travel bookings rebound for August, boosting companies' revenue outlook
U.S. consumer sentiment rebounded in July from a shaky June, dinged by inflation, a weakening U.S. dollar, and President Donald Trump's trade war. That translated to a rise in spending, with travel companies seeing an uptick in bookings and now expecting stronger fourth-quarter revenue growth.
Companies that primarily service price-sensitive customers or the domestic U.S. market have higher expectations for August, with some seeing the end of the third quarter as an inflection point for what has otherwise been a rocky environment in 2025.
"Just as quickly as demand stepped down in early February due to this uncertainty, it appears that demand is now stepping up," United Airlines Chief Commercial Officer Andrew Nocella said on a post-earnings call, saying uncertainty has dropped in recent weeks after five months of weak demand.
Hotel operator Hilton echoed those sentiments, saying the freeze in corporate and business travel spending was finally "thawing."
"Given our overweighting to the domestic market, we would expect to be an outsized beneficiary of any recovery in the domestic demand environment," said Southwest CEO Robert Jordan on an investor call. The company said demand stabilized in the second quarter, and its recent bookings showed clear signs of improvement.
Most U.S. airline and hotel operators withdrew or cut their financial forecasts in April and May as President Trump's trade war threw the industry into its most uncertain time since the COVID-19 pandemic.
Still, there is lingering uncertainty over how the economy will fare in an ever-evolving tariff landscape and with inflation still above the U.S. Federal Reserve's desired 2% rate.
Super 8 motel operator Wyndham said that it was seeing more strength in revenue per available room, an important metric in the hospitality industry, in states like Wisconsin, Michigan, Minnesota, and Missouri, indicating steady demand from blue-collar everyday travelers.
"In August, we'll see a stronger summer travel season," said CFO Michele Allen.
American Airlines (AAL.O), opens new tab said it expects revenue to improve sequentially in August and September. Alaska Air Group (ALK.N), opens new tab Chief Commercial Officer Andrew Harrison said closer-in bookings are coming in stronger, with "very good" activity in August.
However, the uptick in demand will be more evident for hotels and airlines in the fourth quarter.
For airlines, "a continuation of these demand trends is needed as a catalyst for airline stocks" as weak demand for main cabin seats has forced airlines to offer sales to fill planes, Andrew G. Didora, Bank of America equity research analyst, said in a note.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Metro
an hour ago
- Metro
What I Own: I sluethed on Rightmove to get a £36,000 discount on my Bristol home
Welcome back to What I Own – Metro's property series where we speak to homeowners about getting on the ladder. When Orima Kamalu, 36, and her husband first moved into their Bristol three-bed, they started on a high. The pair managed to secure their property for £629,000 – which was £36,000 less than the asking price. How did they do it? Simply by doing some detective work on Rightmove, and taking the risk. Now, they've just marked one year in their new home, which creative Orima has certainly put a colourful stamp on. Here's what Orima had to say about her property journey… You can access completely fee-free mortgage advice with London & Country (L&C) Mortgages, a partner of Metro. Customers benefit from: – Award winning service from the UK's leading mortgage broker – Expert advisors on hand 7 days a week – Access to 1000s of mortgage deals from across the market Unlike many mortgage brokers, L&C won't charge you a fee for their advice. Find out how much you could borrow online Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage. I'm a consultant psychiatrist in the NHS, and my hobbies include DIY, arts and crafts, and watching far too much TV. My husband and I were studying, working and renting in London until 2019, when we moved back to Bristol, my hometown, to be closer to my mum. We have a three-year-old son and a seven-year-old cocker spaniel. Our property is in Westbury-On-Trym, just north of Bristol. It's known for being quite a traditional 'village' and less trendy than other parts of the city, but we love it. My favourite thing is how close we are to so many beautiful outdoor spaces, such as Blaise Estate, Baddocks Woods and The Downs. I'm also obsessed with FED, a delightful local café which recently opened a new branch. That said, the local high street has clearly suffered in recent years, with lots of long-standing independent stores closing. We hope that our community will continue to support the retailers we love. June 2024. Our property was listed for £665,000 and we purchased it for £629,000. Around £127,000. Our mortgage is £2,400 per month. Our bills come to approximately £1,200, including gas, electricity, water, broadband, and council tax. This is our second home, so we used the net proceeds from the sale of our first home as a deposit for this property. We bought our first property in 2021 for £395,000 with a 10% deposit, which came from savings gradually built over several years. We sold it for £463,000. Being NHS workers during COVID, we were lucky that we were still employed during this time, so we could continue saving. We also benefited from the stamp duty hiatus. Orima was keen to channel her creativity into her new house, with bold colour choices and chic furnishings. Now, the standout feature is the ceiling in her three-year-old's bedroom: hand-painted fluffy white clouds on a bright blue sky. The quirky choice got her son's seal of approval, and it even got her norminated for a Best Showstopping Home Feature in the Home Awards. Celebrating talent across 20 categories, including interiors, gardens, furniture innovation and home accessories, the awards highlight the best in the home renovations game. We were probably saving for our initial deposit since we both left university, but in earnest for about two years since moving to Bristol in 2019. The most complex part of securing a mortgage for uswas figuring out how to 'port' our existing mortgage debt from the first property to the second. A ported mortgage is what happens when you buy a new home and you want to take your existing mortgage rate with you. It's usually used when you have a deal that you want to keep, and while you'll still need to apply for a new mortgage, your current rate will still apply if you're successful in 'porting' it. If you want to borrow more than the value of your previous home, you can apply for additional borrowing. This will mean you'll end up with two elements to your mortgage, one part being the ported rate and the second being to cover the extra borrowing (usually on a different rate). Again, our broker oversaw the whole process with ease and clarity, so we were very fortunate that this went smoothly. We have a two-part mortgage with HSBC. Part 1: (ported mortgage) 3.29% fixed until 2027, 30-year term. Part 2: (new/additional mortgage) 4.38% fixed until 2029, 30-year term. We crunched some numbers with our mortgage advisor to determine what we could actually afford, and this kicked off our house search. I saw this property come on the market in September 2023 and immediately fell in love with it, even though it was quite out of our budget. I loved the location, the size and the potential to be refurbished without much need for anything structural. I did a bit of research on the property itself and found the buying history on Rightmove, which showed what the current owners had bought it for, versus the price it was actually listed for at the time. They offered below asking, so we took a chance and did the same. It was actually the same amount below asking that the current owners had bought for, which I think was part of the reason they didn't dismiss it. We were also the only potential buyers, which helped. We were so lucky it was accepted. Before we moved in, I had used a home visualiser app, which virtually redecorates the entire house, so I had a clear vision of how I wanted it to look in time. I get a lot of inspiration from Instagram home accounts. I'm drawn to homes which combine traditional features (like panelling and coving) with bold but earthy colours, prints and statement pieces like funky lighting. Sort of like a 'muted maximalism'. My favourite room is probably the kitchen, as even though I detest cooking, it's the transformation I'm most proud of. The kitchen was very different before, with white gloss units, turquoise walls, and a black floor and counter. It took quite a bit of figuring out and learning new skills but now I love the Victorian dresser and the drinks cabinet we sourced from Facebook marketplace, and I'm proud of our DIY tiling. We were keen to ensure that anywhere we bought had a reasonably-sized garden (a must with a dog), off-street parking and a downstairs toilet. In future, I'll be adding the following to the list: utility room and a garage (we lost one in the move, and it's such a wrench storage-wise). Yes and no. We do have more than enough space however, we've just started making enquiries about expanding the property with a small extension at the back, which we would use as an office and gym space. It would free up an extra bedroom in case we have a second child. The DIY renovations are endless and constantly ongoing. We had solar panels installed recently, which has been a really great addition in terms of bills and sustainability in general. We will likely do some landscaping of the front of the property and the rear garden to make them more enjoyable outdoor spaces. Fortunately (touch wood) nothing major so far. The odd thing is plumbing and heating, but we've been lucky not to need any big issues addressed. We count ourselves as extremely privileged to have been able to take this step, and I think fellow homeowners would do well to remember that. More Trending It's also been a big exercise in patience, as for a quite straightforward purchases, it took a surprisingly long time to get to completion. We think we'll probably stay here for at least 10 years or so, as the location suits our little family very well. View More » In the longer term, I think our desire for more space and privacy may take us further out of Bristol, but we shall see. Do you have a story to share? Get in touch by emailing MetroLifestyleTeam@ MORE: London's 'quaint' borough is the cheapest to rent at £1,485 — but it might not be for long MORE: 'Fantastic' market town named the UK's cheapest for first-time buyers MORE: My husband paid our entire £45,250 house deposit — it makes me so uncomfortable
The Guardian
2 hours ago
- The Guardian
Trump steps up attacks on Fed's independence amid interest rates row
Donald Trump called on top Federal Reserve officials to seize control from its chair, Jerome Powell, if he fails to cut interest rates, stepping up his extraordinary attacks on the central bank's independence. The US president called Powell 'a stubborn MORON' in a series of critical social media posts on Friday, days after the Fed held rates steady for the fifth consecutive time. It comes as Trump faces heightened questions over the impact of his aggressive economic policy, and the White House presses forward with plans for a fresh wave of tariffs next week. Hours before the federal government released data which underlined a significant deterioration in the jobs market, Trump again broke with precedent to pin blame on the Fed – and urge it to change course. 'Jerome 'Too Late' Powell, a stubborn MORON, must substantially lower interest rates, NOW,' Trump wrote on Truth Social, his social network. 'IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!' The Fed chair does not unilaterally set interest rates, which are decided by its rate-setting Federal Open Market Committee. Presidents typically respect its independence, leaving the central bank to make an objective decision – without political interference – about the best policy on interest rates for the US economy. 'Too Little, Too Late. Jerome 'Too Late' Powell is a disaster,' Trump wrote, minutes after Friday's lackluster jobs report. 'DROP THE RATE! The good news is that Tariffs are bringing Billions of Dollars into the USA!' Powell has repeatedly argued that the best approach for the Fed right now is to wait and see the impact of Trump's aggressive tariff strategy before cutting rates. But Trump has increasingly used the Powell, whom he appointed during his first term, as something of a piñata – repeatedly accusing him of damaging the US economy. Two members of the Fed's rate-setting committee dissented from its other policymakers' call to hold rates steady this week, and – to the president's delight – published their reasons on Friday. 'STRONG DISSENTS ON FED BOARD,' Trump wrote, claiming: 'IT WILL ONLY GET STRONGER!' By Friday evening, however, Trump's tone appeared to have changed as he told Newsmax during an interview that Powell will 'most likely' stay in his position. Trump said he would remove Powell 'in a heartbeat' and said the Fed's interest rate was too high but added that others have said Powell's removal would 'disturb the market'. 'He gets out in seven or eight months and I'll put somebody else in,' Trump said. On Friday afternoon, another member of the committee abruptly resigned. Adriana D Kugler, whose term was set to expire in January, announced she would step down next week. She did not provide a reason for the move, and will return to Georgetown University as a professor in the fall. 'I am especially honored to have served during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labor market,' Kugler said in a statement. Her resignation creates a vacancy for the White House to fill. Reuters contributed reporting
The Herald Scotland
3 hours ago
- The Herald Scotland
Fed governor Kugler to resign, offering Trump early vacancy to fill
Kugler's resignation gives Trump an opportunity to at least partially shape the Fed's makeup to his liking ahead of her original departure date. Kugler, a Biden-appointed governor, joined the seven-member board in 2023 and was set to serve through January 2026. Kugler didn't offer a reason for her Aug. 8 departure. A statement from the Fed said she would return to Georgetown University as a professor this fall. In a letter to President Donald Trump, Kugler said it has been the "honor of a lifetime" to serve on the Fed's board of governors. "I am especially honored to have served during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labor market," Kugler said. "The Federal Reserve does important work to help foster a healthy economy and it has been a privilege to work towards that goal on behalf of all Americans for nearly two years." In a July 30 note, Bill Adams, chief economist for Comerica Bank, noted that Trump may use Kugler's opening to appoint his pick for Fed Chair Jerome Powell's replacement. Powell, who was appointed by Trump in 2017, will have his term as Fed chair end in May 2026. The president, who has recently backed away from threats to fire Powell, has made clear that he's unhappy with the Fed's decision to hold off on rate cuts. In June, Trump said he's hunting for a new Fed chair and has narrowed his search to "three or four people." Adams said Trump's next pick for chair could be a current Federal Open Market Committee member or an external hire. "Perhaps the next Chair will have a different approach to monetary policy than Powell, but it's hard to say--recall that Powell himself is a Trump appointee," Adams wrote on July 30, before Kugler announced her resignation. "In any case, the Fed seems likely to cut interest rates between now and when Powell's term ends, which would make the transition feel less fraught."
