U.S. airlines expect the strong travel demand that helped drive fourth-quarter revenue to continue into 2023, but economic uncertainty as well as rising labor and operating costs might may cloud their optimistic outlook.
On January 26, a series of airlines including American Airlines, JetBlue Airways Corp and Alaska Air Group all posted better-than-expected full-year earnings forecasts.
Chief Executive Officer (CEO) American AirlinesMr. Robert Isom, said the number of bookings in advance following the holiday has increased sharply thanks to the increase in the number of domestic and international short-haul flights.
Sharing with analysts, Mr. Isom expressed his expectation that a strong demand environment will continue into 2023 and forecast demand. international travel The long way will improve further this year.
American Airlines revised its earnings forecast for 2023 from $2.50-3.50 per share, easily beating analyst expectations of $1.77 per share.
However, while limited seats due to a shortage of planes have allowed airlines to raise fares to offset costs, higher pilot salaries and other pressures might dent their profits.
JetBlue forecasts that excluding fuel costs will rise 1.5% to 4.5% in 2023. Citi analysts warn that talks with pilots and other issues might be on the way. prompts JetBlue to make some adjustments to its outlook for 2023.
[Dự báo ngành hàng không toàn cầu sẽ phục hồi vào giữa năm 2023]
Like JetBlue, Alaska Air has warned that it will face pressure from higher labor costs. Alaska Air will also have to spend more money related to pilot training as it ditches Airbus planes to switch to aircraft. Boeing.
In a sign that travel demand is waning, credit card giant Mastercard Inc forecast current-quarter revenue growth to be lower than Wall Street estimates. According to Mastercard, gains from pent-up travel demand will decline in the future.
Although the US economy grew faster than expected in the fourth quarter of 2022, some analysts are warning that the growth rate might slow down due to the impact of the US Federal Reserve (Fed) increasing. interest rate.
The recent reopening of China might also boost international tourism. But demand remains uncertain when the Airlines The US faces challenges to benefit from this market.
Analyst Helane Becker of financial services firm Cowen said the US airline industry will benefit when China reopens. But she predicts there will be more travel from China to the West than from the West to the billion-people nation, as Chinese consumers turn to “revenge tourism” following the prolonged lockdown. ./.
Thuy (VNA/Vietnam+)
