Delta Airlines reported that the recent U.S. government shutdown cost it about $200 million in pretax profit, mainly due to softened bookings, but the airline remains optimistic about strong travel demand into 2026. Despite the shutdown's impact, Delta and other airlines continue to advocate for better pay and conditions for air traffic controllers and other essential workers to prevent future disruptions.
United Airlines forecasts its highest-ever quarterly revenue driven by increased travel demand and improved pricing, with an expected adjusted profit of $3.00 to $3.50 per share for the current quarter, surpassing analyst estimates, as it invests in customer experience and benefits from a strong premium and international travel market.
Spirit Airlines has warned it may not survive another year due to significant financial losses, weak demand, and liquidity issues, potentially needing to sell assets to stay afloat, after recently exiting bankruptcy.
Airbnb reports a strong Q3 outlook driven by encouraging summer travel demand, with revenue and bookings exceeding expectations, but warns that growth may slow later in the year due to tough comparisons. The company also announced a $6 billion share repurchase program and is exploring a new loyalty program to enhance customer engagement.
Airbnb's Q2 earnings beat estimates with a 13% revenue increase to $3.1bn, but the company warns of challenging months ahead due to tariffs and economic uncertainties, leading to a 6.5% drop in shares. Despite strong summer bookings, future growth is expected to slow, and the company is investing in new services and a $6bn share buyback program.
American Airlines reported strong Q2 earnings surpassing expectations, driven by international and premium services, but issued a cautious outlook for Q3 due to ongoing travel demand uncertainties, leading to a decline in its stock.
Southwest Airlines reported a second-quarter profit decline with earnings and revenue below expectations but noted that travel demand has stabilized, and announced a $2 billion share buyback amid ongoing business model changes and economic uncertainties.
United Airlines reported a strong second quarter with earnings beating estimates and expressed optimism about 2025, citing reduced global uncertainty and improving travel demand, especially from premium customers, despite some revenue declines and operational challenges at Newark. The CEO anticipates a robust finish to the year and projects 2025 earnings within analyst expectations.
Delta Air Lines reported better-than-expected quarterly profits, signaling a potential stabilization in travel demand amid improving economic confidence, which led to a over 10% rise in its stock price, despite lowering its full-year forecast due to ongoing economic uncertainties.
Delta Air Lines' stock surged nearly 10% after surpassing earnings expectations and restoring full-year guidance, signaling improved confidence in travel demand, especially in premium segments, and boosting broader airline stocks despite a turbulent year.
JetBlue Airways is implementing significant cost-cutting measures, including reducing flights and restructuring leadership, as weaker-than-expected travel demand makes achieving break-even profitability in 2025 unlikely, leading to reliance on borrowed cash to sustain operations.
US travel demand is declining as consumers cut back on vacations and last-minute bookings, driven by economic uncertainty, inflation fears, and political tensions, particularly affecting lower-income households and the tourism industry.
American Airlines' stock rose over 7% after the company increased its adjusted profit guidance for the fourth quarter, citing strong travel demand and improved pricing power. The airline now expects adjusted earnings per share to be between 55 and 75 cents, up from the previous range of 25 to 50 cents. Additionally, it anticipates fourth-quarter revenue per available seat mile to be flat or up 1% compared to the same period in 2023, with adjusted costs per available seat mile expected to rise between 5% and 6%.
Global airlines have raised their 2024 profit forecast to nearly $1 trillion in revenue, driven by a surge in travel demand. The International Air Transport Association (IATA) projects a $30.5 billion profit for 2023, up from $27.4 billion, despite supply chain disruptions and maintenance issues. Passenger yields are expected to rise by 3.2%, while cargo yields are set to decline by 17.5%. North America remains the most profitable region, and Asia's profit forecast has significantly improved. However, the industry's profit margins remain thin at just over 3%.
Global airlines have raised their 2024 profit forecast to $30.5 billion, driven by a surge in travel demand and higher passenger yields, despite ongoing supply chain disruptions and maintenance issues.
