It’s clear that the third quarter is still going to be a bumper one, or even a record one, for the airline industry. But investors now have another reason to be concerned about the sector, particularly as Labor Day marks the unofficial end of the peak summer travel season.
The airline said fuel costs per gallon were now expected to be $2.70 to $2.80, from an earlier estimate of $2.55 to $2.65. Southwest added that the Labor Day holiday weekend was a record one for revenue performance, as travel demand proved to be strong. It’s still expecting record third quarter operating revenue.
However, United stuck to the revenue and cost guidance it issued in July, alongside its second-quarter earnings, pointing to a strong performance in the current quarter. The stock, which was lower in premarket trading, climbed 1.2% early in regular trading.