Southwest Airlines, United sound alarm about rising jet fuel costsBy Reuters
Published Sep. 6, 2023
Southwest Airlines on Wednesday flagged softer August leisure bookings and joined two other US airlines in warning of higher fuel costs in the third quarter due to a jump in crude prices.
The largest US domestic carrier said August bookings were at the lower end of its expectations, in part due to seasonal trends, but maintained that overall leisure demand and yields remain healthy.
Shares of Southwest fell 4% premarket, before paring some losses to trade down 2.6%.
The forecast comes as early signs emerge of domestic travel demand weakening, with inflationary pressures hurting consumers even as carriers hand out costly contracts to retain workers.
United Airlines and Alaska Air Group also warned of higher fuel costs in the current quarter as crude oil prices rose for a third straight month in August, amid signs of tightening supply.
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Source:
https://nypost.com/2023/09/06/southwest-united-sound-alarm-about-rising-jet-fuel-costs/
