Southwest Airlines (LUV.N) reported a third-quarter profit on Thursday that fell about 30% on soaring labor and fuel costs and the budget carrier said it expects higher aircraft deliveries from Boeing (BA.N) in 2023.
A Southwest plane is shown at the gate at Kahului Airport in Kahului, Maui, Hawaii, U.S., August 16, 2023. REUTERS/Mike Blake/File Photoreported a third-quarter profit on Thursday that fell about 30% on soaring labor and fuel costs and the budget carrier said it expects higher aircraft deliveries from BoeingEarnings at U.S. airlines have been pressured due to a surge in jet fuel prices during the July-September quarter, primarily driven by tighter supplies of crude oil.
The company's total expenses rose 10% to $6.41 billion in the quarter, partly attributable to higher labor rates for all employee workgroups, according to Southwest. Analysts have been calling on airlines to cut capacity to protect their pricing power amid indications of weakening domestic travel demand.