U.S. airlines are hiking fares — and travelers keep booking
U.S. airlines are facing increased costs due to the ongoing Iran war, which has added over $6 billion to their expenses this year. Despite these challenges, major carriers like JetBlue and American Airlines are optimistic about revenue growth, forecasting increases for the second quarter. Budget airlines, however, are struggling and seeking financial relief to cope with rising fuel prices.
- ▪U.S. airlines have reported over $6 billion in additional costs this year due to the Iran war.
- ▪JetBlue and American Airlines expect revenue increases of up to 11% and 16.5% respectively for the second quarter.
- ▪Low-cost airlines are seeking $2.5 billion in relief to manage rising fuel prices.
Opening excerpt (first ~120 words) tap to expand
U.S. airlines have reported that the Iran war is adding more than $6 billion and counting to their costs this year. But JetBlue and major carriers this month told Wall Street that they expect customers to cover the higher jet fuel costs by early 2027, if not the end of this year. Carriers have trimmed capacity to cut costs, which also can boost airfare.JetBlue on Tuesday forecast second-quarter revenue would increase as much as 11% from a year earlier even as Geraghty called the war's impact the industry's biggest headwind since the Covid pandemic.American Airlines on Thursday said it expects an increase of 13.5% to 16.5% in revenue for the second quarter."We've always been really sharp in terms of managing our load factors, and we see our loads keeping pace with the capacity adds,"…
Excerpt limited to ~120 words for fair-use compliance. The full article is at CNBC — Top.
Discussion
0 commentsMore from CNBC — Top
