Flights are getting more expensive again as airlines scale back their growth plans

Flights are getting more expensive again as airlines scale back their growth plans


Delta Airlines planes are seen parked at Seattle-Tacoma International Airport on June 19, 2024 in Seattle, Washington. 

Kent Nishimura | Getty Images

Airlines are reporting better unit revenues for the tail end of summer, a sign customers will continue to have to shell out more to fly in the coming months.

Alaska Airlines on Thursday raised its third-quarter profit forecast to a range of $2.15 to $2.25 per share from a previous outlook of no more than $1.60 per share. It also said it expects unit revenue to rise by as much as 2% after previously estimating flat to “positive” unit revenue growth over last year.

Delta Air Lines said domestic and trans-Atlantic unit revenue would be up in September from last year, though it said the CrowdStrike outage in July will mean unit sales will rise no more than 1% compared with a previous forecast of as much as 4% higher for the quarter. Delta has said it expected a $500 million hit from the outage and its aftermath, when it canceled some 7,000 flights.

Alaska said it had a tail wind from the outage, which affected Delta customers more than those on other airlines.

“While capacity remains in line with prior expectations, revenue has performed better than anticipated driven by additional revenue in July related to CrowdStrike disruptions across the industry and stronger performance in August and September,” Alaska said in a securities filing.

Delta’s president, Glen Hauenstein, told a Morgan Stanley conference on Thursday that Delta isn’t seeing a lingering impact on bookings from the outage.

Read more CNBC airline news

Airlines had been wrestling with record numbers of travelers but lower fares and weaker-than-expected pricing power. That appears to be changing.

Wednesday’s U.S. inflation report showed an airfare price index rose 3.9% in August after five consecutive months of declines.

Frontier Airlines said Wednesday that it might break even this quarter, on an adjusted basis, after a previous forecast of margins ranging from -3% to -6%, after it moderated capacity. Last week, JetBlue Airways raised its unit revenue growth forecast for the current quarter because of higher demand and a benefit from the “re-accommodation of customers affected by other airlines’ cancellations due to technology outages in July.”

U.S. airlines have also slowed if not halted hiring altogether this year as aircraft arrive late from Boeing and Airbus, and demand moderates after a massive hiring spree.

Don’t miss these insights from CNBC PRO

Why airlines like American are scrambling to make engines last longer



Source

Why Black entrepreneurs flock to Martha’s Vineyard every August
Business

Why Black entrepreneurs flock to Martha’s Vineyard every August

Sign at Martha’s Vineyard Airport, Massachusetts Cindygoff | Istock | Getty Images Martha’s Vineyard has long been a summer vacation destination for Black families, but August in the Massachusetts beach community is becoming an important hub for Black entrepreneurs, investors and financial firms, too. “I would say the magic of it is really about introducing […]

Read More
Startup Trunk Tools is using AI to reduce construction errors and waste
Business

Startup Trunk Tools is using AI to reduce construction errors and waste

A worker inside a residential building under construction in the Las Palmas neighborhood of Medellin, Colombia, on Wednesday, July 16, 2025. Esteban Vanegas | Bloomberg | Getty Images A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate […]

Read More
How much are Southwest’s new assigned seats? It depends
Business

How much are Southwest’s new assigned seats? It depends

Southwest Airlines new premium seats featuring extra legroom. Leslie Josephs/CNBC Southwest Airlines‘ first assigned seats went on sale this week for flights starting Jan. 27 of next year. What you’ll pay will vary. The price depends on the route, when you’re traveling and where you sit. Selecting your ideal seats can add hundreds of dollars […]

Read More