09/13/2023 – 12:53
Two more US airlines reduced their projections for the third quarter this Wednesday, 13th, adding yet another piece of news of this type to the recent trend. American Airlines cut its profit forecast for the current quarter, in part because of a new contract for its pilots, with rising labor costs. The contract provides for a 46% increase over a four-year period.
Both companies said spending on jet fuel was higher than previously anticipated for the current quarter. Competitors have recently issued similar warnings. Spirit, in turn, also mentions greater activity in promotions with large travel discounts.
Spirit now projects revenue of about $1.25 billion in the third quarter, or 5% less than its previous forecast.
American Airlines said it expects adjusted earnings of $0.20 to $0.30 per share in the third quarter. In July, it projected US$0.85 to US$0.95. Source: Dow Jones Newswires.
#American #Airlines #Spirit #cut #earnings #projections #due #fuel #factors