American Airlines and Southwest Airlines on Thursday warned mounting inflationary pressures could overshadow strong holiday demand and delay a complete return to profit. Both the Texas-based carriers posted a smaller-than-expected loss in the third quarter, but said rising fuel prices as well as higher labor costs are hurting earnings in the quarter through December. Oil prices have surged to multi-year highs this year, threatening a fragile recovery in the airline industry. American, for example, spent nearly 70 percent more on jet fuel in the latest quarter than a year ago. Southwest’s fuel costs surged by 154 percent from a year ago. Higher fuel costs tend to lead to result in less flown capacity and higher fares. Rival Delta Air Lines Inc, which expects fuel prices to result in a pre-tax loss in the current quarter, has suggested that it might pass along the increased costs to consumers. Carriers are also …
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