The fat years for US airlines are coming to an end

America’s passenger carriers have discovered that it’s getting more expensive to run an airline these days. While summertime profits were fine, and travel demand remains robust, a number of airlines are facing higher bills from a variety of factors: labour contracts, significant airport renovation projects, technology spending, and fleet upgrades. The increase in expenses is creeping into 2018 and threatens to spoil higher revenues just as executives are crowing about how they will keep fares up for the holidays. Note the absence of the usual culprit in these matters—fuel. While it’s pricier today relative to 2016, jet fuel expenses still represent roughly the same burden for all carriers (though spot prices have gained 24% over the past year). The real issue causing investor angst is how much nonfuel costs will increase in 2018. <br/>