Southwest CEO: Holiday travel demand is 'strong'

Southwest Airlines (LUV) is gearing up for another busy holiday season.

"Demand looks strong ahead of the holidays," Southwest CEO Bob Jordan told Yahoo Finance during Chase for Business’ Make Your Move Summit in Frisco, Texas.

"Leisure travel is really strong … and that strength is translating into holiday bookings," Jordan said. "Bookings are ahead of where they were this time in 2022."

And robust demand for flights could help restore confidence of skeptical investors. Southwest shares fell to a nine-year low earlier this month after changes in travel patterns and rising costs prompted the airline to scale back 2024 growth plans.

"Travel patterns are returning to normal levels … but there’s no sign of weakness. We’re just not seeing it," Jordan added. "We had record operating revenues, record passengers, and record rapid rewards revenue."

Southwest’s expectation for a strong holiday season echoed a similar outlook from American Airlines (AAL) earlier this month. American noted "steady" demand and strong holiday bookings compared to a year ago.

But the question now is, how long can this last?

Upbeat commentary from airline executives may come as a surprise to some given the murky economic backdrop. After all, higher prices are still pinching Americans' wallets. And stickier inflation could eventually prompt the Fed to raise rates again, JPMorgan Chase CEO Jamie Dimon told Yahoo Finance Executive Editor Brian Sozzi during an exclusive interview at the summit.

Another rate hike could put more pressure on a consumer that Dimon says, despite headwinds, is still in "very good shape."

Top economists have highlighted that same sentiment. Moody’s Analytics' chief economist Mark Zandi told Yahoo Finance Live earlier this week that the resilient consumer is the "key reason for optimism." As long as consumers keep spending, the US is not heading for a recession.

All of this bodes well for travel stocks. Yes, travel demand may be off peak post-pandemic levels, but recent results and commentary from airline executives show people are still booking trips, and airlines like Southwest are well positioned to benefit.

Seana Smith is an anchor at Yahoo Finance. Follow Smith on Twitter @SeanaNSmith. Tips on deals, mergers, activist situations, or anything else? Email seanasmith@yahooinc.com.

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