(Reuters) -Three U.S. airlines on Wednesday warned of higher fuel costs in the third quarter due to a jump in crude prices, adding to the pressures the industry already faces from expensive labor contracts.
While Alaska Air Group cut its pre-tax margin forecast for the quarter, Southwest Airlines said it continues to expect a “solid profit”.
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United Airlines said it expects capacity, operating revenue and cost per available seat mile, excluding fuel, in the third quarter to be consistent with its earlier guidance.
Alaska Air expects a third-quarter adjusted pre-tax margin of 10% to 12%, lower than its prior expectation of 14% to 16%.
The Washington State-based carrier also revised its estimate for revenue growth in the third quarter to 1% to 2%, from flat to 3%.
Shares of Southwest Airlines fell 4.3% before the bell.
(Reporting by Mehr Bedi in Bengaluru; Editing by Pooja Desai)
By: OAN
