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Southwest's stock fell 6.5% as jet fuel prices surged 58% to $3.95/gallon, threatening airline profits amid Middle East tensions.
Southwest Airlines stock dropped 6.5% on Friday as rising jet fuel costs—up 58% to $3.95 per gallon—hit the airline industry amid escalating Middle East tensions.
While Southwest avoids direct flight disruptions due to its domestic focus, surging oil prices, driven by conflict and supply concerns, are increasing operating expenses.
United Airlines CEO Scott Kirby confirmed strong travel demand, with Q1 revenue up 20%, but warned that airlines are likely to raise fares soon to offset fuel costs, which now account for about one-fifth of operating expenses.
The industry faces pressure from higher crude prices, rerouted flights, and inflation, with no immediate signs of weakening consumer demand.
Las acciones de Southwest cayeron un 6.5% a medida que los precios del combustible para aviones subieron un 58% a $ 3.95 / galón, amenazando las ganancias de las aerolíneas en medio de las tensiones en Medio Oriente.