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2025-09-15 19:09:06
[Airlines Issue Third-Quarter Profit Warnings Due to High Fuel Costs] ⑴ Alaska Airlines issued a warning, stating that its third-quarter profit will be at the lower end of its previously forecast due to soaring fuel costs and operational challenges. Data shows that the airline expects fuel costs to reach $2.55 per gallon, higher than the previous forecast of $2.45, primarily due to supply constraints caused by refinery outages on the US West Coast. ⑵ In addition to fuel costs, operational disruptions have also put additional pressure on airlines. Alaska Airlines cited weather and air traffic control issues as driving up passenger compensation and crew overtime costs. Such operational disruptions have already inflicted significant financial losses on the industry this year. ⑶ In addition, a major IT outage in July, which disrupted hundreds of flights and stranded thousands of passengers, also impacted the company's performance. Despite this, Alaska Airlines noted that strong premium demand and a rebound in corporate bookings are improving revenue trends, with unit revenue, a key measure of pricing power, moving towards the upper end of its previous forecast.
