An American Airlines plane takes off above Spirit Airlines planes and other aircraft at Los Angeles International Airport (LAX) on June 1, 2023 in Los Angeles, California.
Mario Tama | Getty Images
American Airlines and Spirit Airlines on Wednesday joined other carriers in warning that higher costs will hit profits during the bustling summer quarter.
American said it expects adjusted earnings per share to come in between 20 cents and 30 cents in the third quarter, down from a previous forecast of as much as 95 cents a share, citing more expensive fuel and a new pilot labor deal. The carrier halved its operating margin from a forecast earlier this summer to 4% to 5%.
Spirit Airlines expects negative margins of as much as 15.5% in the three months ending Sept. 30, down from an earlier estimate of -5.5% to -7.5%. The budget airline also cut its revenue forecast for the third quarter.
Airlines have lost the pricing power they commanded last summer when capacity was more constrained coming out of the pandemic, even though demand has been strong.
Fare-tracking company Hopper on Tuesday said it expects fares to continue dropping in the fall shoulder season, with domestic U.S. tickets averaging $211 in September and October, down 30% from the peak of summer.
Shares of American and Spirit were down in premarket trading on Wednesday. Southwest Airlines and Alaska Airlines cut their third-quarter forecasts earlier this month.
Airlines start reporting third-quarter results in mid-October.
Florida woman allegedly poisons boyfriend’s tea with bleach tablet: report
Connecticut family meets living donor who saved 4-year-old son’s life
Takeaways from the Michigan primary
Judge slaps down rogue Michigan Republican chairwoman who refused to leave post
Tyreek Hill broke Pasco County woman's leg during football lesson at his Florida home, lawsuit says
The Best Moisturizing Body Washes I’ve Tried for My Super Dry Skin
Beyoncé Revealed She’s Dealt With Scalp Psoriasis While Promoting Her New Hair Care Line
People Who Have Had COVID Face a Much Higher Risk of Chronic Fatigue, Study Says
Meghan Markle and Prince Harry Just Fired Back at Critics With 3 Words After Sussex Website Rebrand, Canada Trip
17 Women Share the Reasons They Stopped Wearing Makeup
‘Little People, Big World’: Caryn Chandler Lists Oregon Home for $540,000 After Moving to Roloff Farms
Margot Robbie Was Worried About Being Typecast After ‘Wolf of Wall Street’
Charles Barkley Addresses His Relationship With Madonna and Reveals if They Really Did Date at One Point
A Major ‘Stardew Valley’ Update Is Coming in March
Paul McCartney Wrote 1 Beatles Song After a ‘Mystical Religious Experience’
Sport15 hours ago
I’m an ex-Prem ace who managed in Sudan & Oman, now my son’s more famous than me
News21 hours ago
Three key drivers for the Ukraine war in 2024 – Asia Times
Tech12 hours ago
Updates From The Mandalorian & Grogu, and More
Lifestyle21 hours ago
Gerard Butler’s ‘Has Fallen’ Film Franchise Gets an Event TV Series Makeover in Studiocanal’s ‘Paris Has Fallen’
News11 hours ago
Lawsuit alleges New York doctor died of allergic reaction after eating at Disney World restaurant
News15 hours ago
Camilla takes the reigns as head of the Royal family: Confident-looking Queen steps up to represent the British monarchy at memorial service attended by whole host of European royals in Charles’ absence
Tech24 hours ago
What Is ANC and Why Do I Need It in My Headphones?
Tech23 hours ago
Google Will Relaunch Gemini in a ‘Few Weeks,’ After Its Racial Controversy