An American Airlines 787 is loaded with cargo at Philadelphia International Airport.
Leslie Josephs/CNBC
More companies are warning that a surge in the cost of fuel and employee pay hikes will eat into profits this quarter.
Companies from aerospace manufacturers to package delivery giant UPS are digesting big new labor deals. Meanwhile, unions from the auto industry to Hollywood are pushing for better compensation. Airlines, whose biggest expenses are jet fuel and labor, are getting hit particularly hard.
Delta Air Lines on Thursday cut its adjusted earnings forecast for the third quarter to between $1.85 and $2.05 a share, down from an earlier forecast of $2.20 to $2.50. The carrier said it is paying more for fuel than it expected but said maintenance costs were also higher than anticipated.
U.S. jet fuel at major airports averaged $3.42 a gallon as of Tuesday, up 38% from two months ago, according to Airlines for America, an industry group.
On Wednesday, American Airlines trimmed its…
2023-09-16 08:07:21
Article from www.cnbc.com
