Summertime is known for new trips, adventures, and excitement… And equally, airport chaos. And no one knows that better than the airlines themselves.
But this year, the busyness isn’t helping airline earnings…
It’s hurting them.
Airline Earnings Come Crashing Down
This summer, airline earnings are expected to drop $2 billion in profit…
THAT COMES AFTER FIRST-QUARTER LOSSES OF $800 MILLION
This giant drop comes from a plethora of issues plaguing the airline industry this year specifically…
Issues that long term could create a much more unpleasant experience for travelers.
One of the largest problems facing airlines currently is the low supply of planes. Thanks to Boeing’s fiasco earlier this year, fewer and fewer planes are being shipped to airlines.
LESS PLANES MEAN LESS FLIGHTS FOR TRAVELERS…
While Boeing’s problems are far from over, it’s already created unprecedented effects on airline earnings.
On the ground, however, the airline industry’s two biggest costs…
Labor and jet fuel both jumped in price.
Jet fuel tends to be more expensive during the summer due to high demand…
But this factor paired with airplane pilot’s double-digit pay raise makes for heightened costs.
Thankfully for travelers, there are 6% more seats available than in July 2023 which means lower ticket prices…
But unfortunately for airlines and their earnings, low prices and more travelers won’t be enough to offset these new losses.
Prepare For Landing
All in all…
It seems like airline earnings are in for a bumpy landing come the second half of the year.
Be Great,
GCTV Staff
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