Staff shortages, airport chaos, and higher fuel costs have caused earnings at US airlines to fall below expectations.
Consumers are still booking flights and hotels despite the economic downturn. Hotels have been able to make more money than airlines.
The problems faced by airlines and airports are more difficult to resolve than those in the lodging industry according to David Tarsh.
The shortage of labor in the aviation industry is more with less skilled workers than in the case of the hotel industry. "If you're short of cabin crew and you're short of security people in the airport, you can't just increase wages and suddenly fill these jobs." The people need to be trained.
Even with strong pricing power, U.S. carriers are struggling to make up for higher costs such as fuel.
The adjusted loss for the quarter was 47 cents per share, compared to analysts predictions of a loss of 11 cents per share.
Last month, United Airlines, American Airlines, and Delta Air Lines all reported lower than expected profits.
Hotel reservations are going up. Marriott International Inc (MAR.O) on Tuesday topped Wall Street estimates for revenue and profits as travelers booked more group travel and longer stays.
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