Skyrocketing Fuel Costs Slash Airline Profit Forecasts for Q3

American Airlines drastically cut its profit forecast for Q3 due to soaring fuel prices. It now expects 20-30 cents per share vs. 95 cents previously.
Fuel prices have increased considerably since July. American is paying about $3 per gallon for jet fuel.
A new pilot contract with $9B in incremental compensation also contributed to the lower profit forecast.
Spirit Airlines also cut its Q3 revenue forecast by 5% citing fuel costs and discounted promotional fares.
Despite economic concerns, airlines are still expected to post nearly $10B in global profit this year according to an industry forecast.

cnn.com

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