https://tokenist.com/the-ten-largest-us-airline-stocks-are-down-24-since-july-as-costs-surge/
In 2023, Brent crude oil prices surged to an all-time high of $95 per barrel, posing significant challenges to the airline industry's recovery. Fuel costs, accounting for 15-20% of airline expenses, have seen a remarkable 71.7% increase in cost per gallon since January 2019, as reported by the Bureau of Transportation Statistics (BTS). This volatile oil market has also made airline stocks highly unpredictable.
As a result, the S&P Supercomposite Airlines Industry Index plummeted by nearly 24% since its July peak at $250. Earnings expectations for 2024 have declined by 10%, and the outlook for 2023 anticipates an 8% drop in average airline profits, a stark departure from earlier projections. Airlines such as American and Spirit have had to revise their forecasts due to soaring fuel expenses.
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