American Airlines (AAL) and Southwest Airlines (LUV) shares were initially under pressure in Thursday’s pre-market hours after reporting earnings, both seeing a bump higher at the start of regular trading hours. American and Southwest signaled margin headwinds tied to airfare prices and capacity pressures.
Boyd Group International President Mike Boyd and Bloomberg Intelligence senior aerospace, defense, and airlines industry analyst George Ferguson come onto The Morning Brief to talk about the state of the airline industry and how these travel conditions could shape the landscape in the latter half of 2024.
“Prepare for a bloodbath the rest of the year,” Boyd tells Yahoo Finance, his sentiments affirmed by Ferguson’s belief that capacity numbers could make it “rough to turn 3Q around, 4Q is always a weak quarter. It’s going to be a rough year for the airlines, rougher than I thought.”
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This post was written by Luke Carberry Mogan.
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