Southwest Airlines, United sound alarm about rising jet fuel costs
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Southwest Airlines said August bookings were at the lower end of expectations, partly due to seasonal trends, but leisure demand and yields remain healthy.
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Southwest, United Airlines, and Alaska Air warned of higher fuel costs in Q3 as crude oil prices rose for the third straight month in August.
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United said jet fuel prices have climbed over 20% since mid-July. Alaska lowered its Q3 pre-tax margin forecast.
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Southwest trimmed its Q3 revenue per available seat mile expectations but still forecasts a solid profit.
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US airlines typically don't hedge against fuel costs, leaving them exposed to price swings. The quick fuel price increase has limited their ability to respond through fares.