Sumary of Airlines are gearing up for a busier — and costlier — holiday season as fuel prices rise:
- A Southwest Airlines Boeing 737-700 (LN2318) on final-approach after a pre-delivery test flight at dusk.
- But jet fuel hasn’t been this expensive since 2014. Airlines also racing to hire thousands of employees to meet growing demand: pilots, flight attendants, reservations agents, baggage handlers and many others, competing in a tight labor market that would have seemed impossible in the early days of the pandemic.
- And, airlines have run through much of the $54 billion in government payroll aid that helped cover their labor bills during the pandemic.
- Frontier Airlines on Wednesday forecast a loss on an adjusted basis for the fourth quarter due to higher fuel costs.
- The rise in fuel prices is “definitely delaying the earnings recovery,” said Savanthi Syth, an airline analyst at Raymond James.
- “Airlines eager to cash in on a return to demand have tried to balance — with varying degrees of success — how much they can fly with their current staffing levels.