Airlines warn about spike in fuel costs, Southwest narrows revenue outlook

Major U.S. airlines are facing a spike in jet fuel prices, which could impact their costs during the busy summer travel season and raise concerns about the ability to pass on the increase to customers.

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Relevant topic timeline:

8/31/2023

U.S. Consumer Oil Demand Has Exceeded Expectations

Standard Chartered predicts that U.S. demand for jet fuel and gasoline will continue to surpass expectations from earlier this year, while demand from the industrial sector remains weaker than anticipated, indicating a pattern that is likely to persist in the coming months.

9/6/2023

Southwest, United, and Other Airline Stocks Fall. A New Fear Is Emerging.

Airline stocks, including Southwest and United, are falling due to concerns over higher fuel costs.

9/6/2023

U.S. airlines flag high fuel costs, Southwest's August bookings disappoint

Southwest Airlines warns of softer August bookings and higher fuel costs in the third quarter due to a rise in crude oil prices, while United Airlines and Alaska Air Group also anticipate increased fuel costs.

9/13/2023

American, Spirit Airlines Cut Summer Profit Forecasts Due to Higher Costs and Lost Pricing Power

American Airlines and Spirit Airlines have warned that higher costs, including fuel expenses and labor deals, will impact their profits during the summer quarter, leading to reduced adjusted earnings per share and lower revenue forecasts.

9/14/2023

Rising Costs Dampen Profit Outlook for Airlines, Delivery Firms as Unions Push for Higher Pay

A surge in fuel costs and employee pay hikes are impacting profits for companies across various industries, particularly airlines, as Delta, American, Alaska, and Southwest Airlines all revise their earnings forecasts.

9/20/2023

Gas Prices Reach 11-Month High Due to Oil Supply Cuts and Seasonal Factors, But Falling Demand Could Provide Relief

Gas prices in the US have reached their highest level in 11 months, posing challenges for the Federal Reserve in its campaign to control inflation. Factors contributing to the increase include rising oil prices, production cuts by Saudi Arabia and Russia, reduced refinery production due to hot weather, and low reserves in the Strategic Petroleum Reserve. However, prices are expected to decrease with the switch to a cheaper gasoline blend in the fall and projected global economic slowdown in 2024.

9/20/2023

Boeing Forecasts Surge in Jet Demand, Driven by China's Expanding Air Travel Market

Boeing predicts a surge in jet demand, particularly from China, indicating a positive outlook for the company.