CNBC
Leslie Josephs
08 July 2024
Record summer air travel demand isn’t translating to record U.S. airline profits. Carriers will have to answer for that disconnect when they report quarterly results this month.
Some airlines have forecast record demand, and in some cases, revenue. On Sunday, the Transportation Security Administration screened more than 3 million people, a one-day record.
But higher labor and other costs have eaten into airlines’ bottom lines. To adapt to slower demand growth and other challenges, some carriers have slowed if not halted hiring compared with hiring sprees when they rebuilt after the pandemic.
And some airlines are facing delays of new, more fuel-efficient aircraft from Airbus and Boeing
at the same time that a Pratt & Whitney
engine recall has grounded dozens of jets.
[Read on: Airline profits lag even as travel demand breaks records (cnbc.com)]
