Three airlines issued revised guidance today all referring to the impact of the rising oil price on earnings.
United Airlines’ update regarding its financial outlook for third quarter 2023, noted that since jet fuel prices have climb 20% since mid-July 2023, the company’s all-in fuel price is now expected to be between $2.95 to $3.05 per gallon. United continues to expect third quarter 2023 capacity, operating revenue and CASM-ex- fuel to be consistent with guidance provided in July.
Southwest Airlines noted that barring significant unforeseen events and based on current trends, it continues to expect solid profits in third quarter and full year 2023 but warned that costs would rise as it adds capacity and fuel costs. Southwest now expects third quarter revenue per available seat mile to be down 5% to down 7% compared to a previous estimates for down 3% to down 7%.
Southwest added that although August 2023 close-in leisure bookings were on the lower-end of the company's expectations, it still expects overall corporate travel to have a modest underlying year-over-year sequential trend improvement during the third quarter compared to the second. Overall leisure demand remains healthy said the airline.
The US carrier continues to expect fourth quarter 2023 capacity to increase in the range of 20 percent to 22 percent, year-over-year, and first quarter 2024 capacity to increase in the range of 14 percent to 16 percent, year-over-year, of which nearly 90 percent is from the carryover effect of capacity growth in 2023.
An investor update from Alaska Air update also referenced the impact of the increase in fuel price