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

Airlines cutting profit forecasts due to higher fuel costs and new labor deals raising expenses. Delta, American Airlines lowered guidance.
UPS reached deal with Teamsters union that will raise driver pay to $170,000. Will increase costs more than forecast.
Auto workers union and Detroit automakers appear far apart on new labor deals ahead of deadline. Strikes likely after Thursday.
Hollywood writers and actors strikes began earlier this year seeking better pay amid changing industry with streaming.
While strong travel demand has helped airlines cover higher costs so far, some like Spirit and Frontier see cracks with sales slowing after summer.

cnbc.com

Relevant topic timeline:

9/6/2023

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.

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.

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

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.

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.

10/11/2023

Wall Street Eyes Delta Earnings for Demand and Fuel Cost Clues

Wall Street will closely scrutinize Airlines' earnings, as their main concerns revolve around demand and fuel costs.