Increased fuel costs hit the major carriers hard during the early part of the year, but Investors.com reports, that – if many of the third quarter results are anything to go by – airlines have somewhat recovered from their losses. It appears that many have seen a reasonable rallying of their stock.
Third quarter results are rolling in and it appears that the major carriers have somewhat recovered from losses incurred earlier in the financial year due to spiking fuel costs, Investors.com reports. Both Delta Air Lines and United Airlines have reported that they have managed to recoup about 85 per cent of earnings lost due to fuel costs during this latest financial period.
Offering her comments in a research note earlier this week, Helane Becker, an analyst with Cowen & Co. was quoted by the outlet as writing, “We believe revenue continues to improve as airlines raise fares and fees to cover rising costs. In our view, it’s not just fuel costs rising; labor costs, landing fees, depreciation and other operating costs are also rising, so there is pressure on airlines to raise revenue to maintain margins.”
A rise in stock has also been reported by all of the major carriers, with American Airlines (AA) seeing a hike of 1.5 per cent and Southwest an increase of one per cent. Delta Air Lines, the outlet reports, notched up .4 per cent while United saw an increase of .3 per cent.
With United Airline’s third quarter results due imminently, the outlet reports that the U.S. market predicts that the carrier’s earnings per share will increase by 39 per cent up to $3.09. “Analysts see revenue climbing 11 per cent to $10.956 billion,” the outlet reports.
Delta publicly reported its third quarter results last week while American will release its figures on October 25. United will host its conference call regarding its results on Wednesday morning and Southwest is also due to have its third quarter conference call on October 25.