Flights are getting more expensive as airlines scale back growth plans | Wilnesh News

Airlines reported an increase in unit revenue in late summer, a sign that customers will continue to pay more to fly in the coming months.

Alaska Airlines On Thursday, the company raised its third-quarter profit forecast to $2.15 to $2.25 a share from its previous forecast of no more than $1.60 a share. The company also said that it had previously expected unit revenue to be flat or “positive” compared with last year, and unit revenue was expected to grow by 2%.

Delta Air Lines Domestic and transatlantic unit revenue will be higher in September than last year, although the company said mass strike Outages in July meant unit sales would not rise more than 1%, compared with previous forecasts of a maximum 4% for the quarter. Delta Air Lines said it expected the outage and its aftermath to cost $500 million and that it canceled about 7,000 flights.

Alaska Airlines said the outage affected Delta Air Lines customers more than customers of other airlines.

“While capacity remained in line with prior expectations, revenue performance was better than expected due to additional revenue related to industry-wide CrowdStrike outages in July and strong performance in August and September,” Alaska said in a securities filing.

Delta Air Lines has not seen a lasting impact on bookings from the outages, President Glen Hauenstein said at a Morgan Stanley conference on Thursday.

Airlines have been grappling with record passenger numbers, lower fares and weaker-than-expected pricing power. This appears to be changing.

Wednesday’s U.S. inflation report showed that the air ticket price index rose 3.9% in August after falling for five consecutive months.

Frontier Airlines On Wednesday, it said it was likely to break even in the quarter on an adjusted basis after adjusting for capacity, having previously forecast a margin of -3% to -6%. last week, JetBlue Airways The company raised its unit revenue growth forecast for the current quarter due to increased demand and “rescheduling by customers affected by flight cancellations by other airlines due to technical outages in July.”

U.S. airlines have slowed, if not halted, hiring this year as Boeing and Airbus planes arrive late, and demand has slowed after a massive hiring spree.