Washington, Frontier Flight departs in DC photographer: Al Drago/Bloomberg via Getty Image
Major airline CEOs are predicting fewer flights and destinations as some companies report a decline in profits.
The latest inflation number of the labor department states that air fares, hotel rooms and other travel prices have generally declined in recent months. If the trend continues, at least two major airline CEOs estimate that passengers will have low flights and destinations to choose from.
Frontier Airlines CEO warning
Frontier Airlines CEO Barry L. Biffle addressed the company’s issue The most recent earning call,
What are they saying:
“There is a lot of supply relative to the demand,” Bifley said on the call. “And until you see a meaningful jump in demand, the capacity in this industry is going to continue to continue to continue.”
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Biffle is not the only airline CEO that looks alarm bell decrease in flight. United Airlines CEO Scott Kirby echoed the same feeling United’s most recent earning call,
“If I dig deep into it and I look at every airline, which is not named United or Delta, I can find each of them, which is a double -digit percentage of their passage network, which loses the money,” Kirby said. “And the only way to get a margin for them that is close to their WAC is to stop the flying places that lose money. And it’s eventually going to happen.”
By numbers:
Frontier’s second quarter earnings showed $ 929 million in revenue, but a net loss of $ 70 million. Meanwhile, United reported Q2 benefits, with earnings of $ 1.2 billion.
As NardwellletThe cost of the journey was low in July for the fourth consecutive month. The hotel room rates are 3.7% below in the last one year, while air fares are 3.5% below.
The report states that overall, the average American travel cost is only 1% less than this time in 2024, “but it comes to the time of economic uncertainty when prices are increasing for most other things,” the report states.
Source: The report includes information about Nerdwelllet, The Street, Frontier Airlines and United Airlines Income Calls and Associated Press.
