Airlines face new test amid rising fuel prices, labour costs
Delta Air Lines is expected to kick off Q4 earnings results for US airlines Thursday, as the industry faces a fresh test of its financial resilience amid rising fuel prices and labour costs. The sector has notched 7 consecutive years of profitability, the longest and strongest cycle in what has traditionally been a turbulent industry prone to big booms and busts. While no one is betting on a recession soon and airlines are expected to be profitable this year, some investors are questioning how long the winning streak can last. Delta’s results likely will telegraph the outlook for the sector. The carrier already has warned that higher costs will shrink its operating margin in 2017 from last year’s solid 16.5% performance. Other big carriers are expected to report later this month. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-01-09/sky/airlines-face-new-test-amid-rising-fuel-prices-labour-costs
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Airlines face new test amid rising fuel prices, labour costs
Delta Air Lines is expected to kick off Q4 earnings results for US airlines Thursday, as the industry faces a fresh test of its financial resilience amid rising fuel prices and labour costs. The sector has notched 7 consecutive years of profitability, the longest and strongest cycle in what has traditionally been a turbulent industry prone to big booms and busts. While no one is betting on a recession soon and airlines are expected to be profitable this year, some investors are questioning how long the winning streak can last. Delta’s results likely will telegraph the outlook for the sector. The carrier already has warned that higher costs will shrink its operating margin in 2017 from last year’s solid 16.5% performance. Other big carriers are expected to report later this month. <br/>
