Summer travel boom not enough to fire up airline earnings

Record summer travel demand was tipped to translate into bumper earnings for airlines – but quarterly reports are looking less than stellar.

Airline executives attributed the overcapacity to an overoptimistic view of travel demand, which by most standards has been robust. In addition to the discounting pressure, new labour contracts and higher lease rates and maintenance costs have driven up the industry’s operating expenses. Southwest has been hit hard by Boeing’s jet delivery delays, and it is under pressure from an activist investor to oust its CEO, overhaul the board, and shake up its business.

Analysts warn these pricing worries could spread across the sector in Europe. “More aggressive pricing by the market leader is likely to result in adverse fallout for the other European airlines,” Liberum analyst Gerald Khoo said in a note. “I think we are doing better than this,” Varadi told Reuters, referring to Ryanair’s challenges over softer pricing.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

United Airlines Q3 earnings guidance disappointsUnited Airlines (UAL) posted mixed second quarter results. Adjusted earnings per share of $4.14 topped estimates of $3.93. Operating revenue of $15.0 billion...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

United Airlines, JNJ earnings, housing data: What to WatchKicking off July 17th are some earnings reports from industry leaders, including Johnson and Johnson (JNJ) before the opening bell and United Airlines (UAL) ...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Summer travel boom not enough to fire up airline earningsRecord summer travel demand was tipped to translate into bumper earnings for airlines - but quarterly reports are looking less than stellar. This week...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

American Express earnings: Top takeawaysAmerican Express (AXP) increased its full-year outlook after posting second quarter earnings that were well above Street expectations but revenue that fell...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

American Express earnings, Fedspeak: What to WatchJuly 19th will feature another round of Fed commentary. On Friday, investors will hear from both New York Fed President John Williams and Atlanta Fed...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

How to get the most out of your student summer earningsThere are three things parents can do to help their kids do that: make it motivating to save, set up a savings plan, and establish a budget for the school year
Source: globeandmail - 🏆 5. / 92 Read more »