{
    "success": true,
    "data": {
        "id": 2051787,
        "msgid": "high-fuel-costs-erode-profits-at-major-us-airlines-1792742065",
        "date": "2026-10-23 14:26:23",
        "title": "High fuel costs erode profits at major US airlines",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Business",
        "summary": "Soaring jet-fuel costs are squeezing major US airlines despite robust travel demand and record revenues. American Airlines has cut its full-year outlook, while Southwest and United also expect fuel costs to rise further in the fourth quarter of 2026.",
        "content": "<p>New York (ANTARA) \u2013 As major US airlines reported their third-quarter\n(Q3) 2026 operating results, rising fuel costs squeezed profit margins\ndespite strong travel demand.<\/p>\n<p>Although revenues reached records and travel demand remained strong,\nhigher operating costs continued to erode profits and weakened earnings\nexpectations ahead of the final quarter of 2026.<\/p>\n<p>American Airlines reported a net loss of US$269 million (US$1 =\nRp18,047) in Q3 2026, despite posting record revenue of US$16.3\nbillion.<\/p>\n<p>Its fuel costs rose by US$1.9 billion, or 67.5 per cent, with the\naverage fuel cost reaching US$3.85 per gallon.<\/p>\n<p>The airline expects to pay US$4.70 per gallon in the fourth quarter\n(Q4) of 2026, almost double the price paid in Q4 2025. Its quarterly\nfuel bill is projected to increase by about US$2.8 billion year on\nyear.<\/p>\n<p>American Airlines also lowered its full-year forecast, projecting an\nadjusted loss of US$1 to US$1.60 per share, compared with its previous\noutlook for a loss of 65 cents to a profit of 65 cents per share.<\/p>\n<p>Southwest Airlines reported similar challenges on Wednesday (21\nOctober), although its Q3 profit exceeded Wall Street expectations.<\/p>\n<p>According to a Southwest Airlines press release, the Dallas-based\ncarrier posted net profit of US$270 million, while operating revenue\nrose 21.2 per cent to US$8.4 billion, a Q3 record for the company.<\/p>\n<p>However, Southwest\u2019s fuel costs increased by US$821 million compared\nwith the same period last year, and its Q3 fuel cost reached US$3.92 per\ngallon, above its previous assumption of US$3.70\u2013US$3.75 per gallon.<\/p>\n<p>\u201cDemand remains strong as we move beyond last year\u2019s baggage-fee\nimplementation period and other commercial initiatives, reinforcing our\nconfidence that the earnings power we have built is durable, even with\nsignificantly higher fuel costs,\u201d Southwest Airlines chief executive Bob\nJordan said in a press release on the company\u2019s Q3 2026 earnings.<\/p>\n<p>\u201cWe remain confident in our ability to strengthen earnings, improve\nreturns and expand margins over time,\u201d Bob said.<\/p>\n<p>Southwest Airlines assumes Q4 2026 fuel costs of about US$4.55 per\ngallon, based on the forward curve as at 15 October 2026.<\/p>\n<p>United Airlines reported Q3 2026 revenue of US$17.9 billion on\nTuesday (20 October), up 17.4 per cent from the same period last year,\nwith net profit reaching US$1 billion. However, its fuel costs rose by\nUS$1.8 billion, or 62 per cent, year on year, according to the company\u2019s\nQ3 2026 earnings report.<\/p>\n<p>United Airlines expects to pay about US$4.80 per gallon for fuel in\nQ4 2026, compared with US$3.90 in Q3 2026. The airline forecast adjusted\nearnings of 50 cents to US$1.50 per share for Q4 2026, below Wall Street\nexpectations.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/high-fuel-costs-erode-profits-at-major-us-airlines-1792742065",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}