Airline stocks sink after American Airlines signals profit hit from rising labor, fuel costs

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American Airlines signals profit hit from rising labor, fuel costs

Higher fares amid rising global travel have so far helped the airlines industry mitigate rising costs, but concerns over the sustainability of consumer demand have gained ground against the backdrop of high borrowing costs, inflation and job losses.

Indicating robust demand, American said it expects total revenue per available seat mile, a proxy for pricing power, to be up about 25.5% in the first quarter from a year earlier.

 

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