A number of airlines including American (AAL), Spirit (SAVE), and Southwest (LUV) have warned about the impact of higher jet fuel costs. Third Bridge Global Sector Lead for Industrials Materials and Energy Peter McNally highlights three issues impacting the industry right now. The three issues McNally cites are the increase in international travel, costs, and capacity. Capacity has become an issue, he says, because now that suppliers are delivering planes, there are more seats, and that's putting "downward pressure" on fares. "Airlines have less pricing power now than they do at any point since the recovery began," McNally adds.
