A Delta Air Lines plane is parked at the Seattle-Tacoma International Airport in Seattle, Washington, on June 19, 2024.
Kent Nishimura | Getty Images
Airlines reported an increase in unit revenue at the end of the summer, suggesting customers will continue to pay more to fly in the coming months.
Alaska Airlines On Thursday, the company raised its third-quarter profit forecast to $2.15 to $2.25 a share from its previous forecast of no more than $1.60 a share. The company also said it had previously expected unit revenue to be flat to “positive” and expected unit revenue to grow 2%.
Delta Air Lines Domestic and transatlantic unit revenue will be higher in September than last year, although the company said mass strike power failure July’s sales will mean volume growth will be no more than 1%, compared with previous forecasts of up to 4% for the quarter. Delta Air Lines expects worth US$500 million From the outage and its consequences, when Cancel About 7,000 flights.
Alaska Airlines said the outage affected Delta customers more than customers of other airlines.
“While capacity remained in line with prior expectations, revenue performance was better than expected due to additional revenue related to industry-wide CrowdStrike outages in July and strong performance in August and September,” Alaska said in a securities filing.
Airlines have been grappling with record passenger numbers, lower fares and weaker-than-expected pricing power. This seems to be changing.
wednesday usa inflation report Data showed that the air ticket price index rose 3.9% in August after falling for five consecutive months.
Frontier Airlines It said on Wednesday it might even break even this quarter on an adjusted basis after adjusting for capacity, having previously forecast profit margins of -3% to -6%. last week, JetBlue Airways The company raised its unit revenue growth forecast for the current quarter due to increased demand and “rescheduling by customers affected by flight cancellations by other airlines due to technical outages in July.”
American Airlines also Hiring will slow down, if not stop altogether Planes from Boeing and Airbus are arriving later this year and demand has slowed following massive recruiting.
