[ad_1]
The post-epidemic recovery is over, transportation is returning to normal, and European and American airlines are facing many challenges that will harm future growth: from increased operating costs to geopolitical crises, to delayed deliveries of Airbus and Boeing aircraft and falling ticket prices, all aspects have put pressure on the industry, and even the stock market has negative industry indexes since the beginning of the year: -21% in the United States and -6% in Europe.
This is highlighted by Standard & Poor’s latest report, “North American Airlines Face Turbulence in 2024, Hope for Smoother Skies in 2025,” which analyzes the second quarter financial data of US companies and concludes that revenue growth for US airlines in 2024 will be slower than expected, mainly due to falling airfares, which has a negative impact on the company’s ratings.
The report lists numerous reasons that could cause financial strain in the coming months, from rising wages to higher maintenance costs, from overcapacity to competitive pressures affecting profitability to increased fuel costs.
Based on these analyses, the ratings company has moderately lowered its forecast for the air transport industry this year, with an optimistic outlook but lower than previously expected. For 2025, the forecast remains optimistic, with solid financial performance, despite challenges.
Some airlines suffered more than others, such as low-cost Southwest Airlines, which saw its outlook revised from stable to negative, while JetBlue and Spirit Airlines were downgraded due to overcapacity in the market, which has led to falling prices. In contrast, Delta Air Lines, United Airlines, American Airlines and Air Canada continued to report solid results, confirming the positive outlook.
[ad_2]
Source link
