Airlines face disappointing earnings due to excess seat supply and increased costs.
Despite a boom in summer travel, airlines face disappointing earnings due to an excess supply of seats in the price-sensitive market. Airlines such as American, Southwest, United, Delta, Alaska, and Ryanair must cut fares to fill planes, with increased operating expenses from new labor contracts, higher lease rates, and maintenance costs. European airlines, including Ryanair, have also experienced weakened yields and increased pricing pressure, resulting in lower profits.
July 22, 2024
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