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

American Airlines and Spirit Airlines cut profit forecasts for summer quarter due to higher costs.
American expects adjusted EPS of 20-30 cents, down from up to 95 cents previously.
Spirit expects negative margins up to -15.5%, down from -5.5% to -7.5% previously.
Airlines have lost pricing power compared to last summer when capacity was more constrained.
Fares expected to keep dropping into fall shoulder season according to Hopper data.

cnbc.com

Relevant topic timeline:

9/6/2023

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

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

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Skyrocketing Fuel Costs Slash Airline Profit Forecasts for Q3

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

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Delta Lowers Q3 Profit Outlook on Higher Fuel Costs, Maintains Full-Year View

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Posted 9/13/2023, 12:10:15 PM

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

American Airlines and Spirit Airlines cut profit forecasts for summer quarter due to higher costs.
American expects adjusted EPS of 20-30 cents, down from up to 95 cents previously.
Spirit expects negative margins up to -15.5%, down from -5.5% to -7.5% previously.
Airlines have lost pricing power compared to last summer when capacity was more constrained.
Fares expected to keep dropping into fall shoulder season according to Hopper data.

cnbc.com

Relevant topic timeline:

9/6/2023

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

9/6/2023

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

9/13/2023

Skyrocketing Fuel Costs Slash Airline Profit Forecasts for Q3

9/13/2023

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

American Airlines and Spirit Airlines have both lowered their guidance for the current quarter, adding to the bearish sentiment surrounding airline stocks.

9/14/2023

Delta Lowers Q3 Profit Outlook on Higher Fuel Costs, Maintains Full-Year View

Delta Airlines has lowered its profit estimates due to rising costs, including higher fuel and maintenance expenses, as well as lower travel demand amid increased industry expenses.

9/14/2023

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

9/14/2023

Delta Lowers Profit Outlook on Higher Fuel Costs But Sees Ongoing Strong Travel Demand

Delta Air Lines has lowered its profit outlook due to higher fuel prices, but the news may not be entirely negative.