Airline Stocks Drop as American, Spirit Cut Guidance on Weak Demand and Rising Costs

American Airlines and Spirit Airlines slash guidance for current quarter
More turbulence for airline sector as guidance cuts weigh on investor sentiment
American cites softening bookings and higher costs for guidance cut
Spirit blames Hurricane Ian and operational challenges for reduction
Comes after similar warnings from Delta, JetBlue recently on demand weakness

barrons.com

Relevant topic timeline:

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.

9/13/2023

Skyrocketing Fuel Costs Slash Airline Profit Forecasts for Q3

American Airlines has revised its profit forecast for the third quarter due to rising fuel costs and a new pilot contract, with adjusted earnings per share expected to be significantly lower than originally forecasted, while Spirit Airlines has also cut its revenue forecast for the same reasons.