and on Wednesday joined other carriers in that higher costs will hit profits during the bustling summer quarter.
American said it expects adjusted earnings per share to come in between 20 cents and 30 cents in the third quarter, down from a previous forecast of as much as 95 cents a share, citing more expensive fuel and a . The carrier halved its operating margin from a forecast earlier this summer to 4% to 5%.
Spirit Airlines expects negative margins of as much as 15.5% in the three months ending Sept. 30, down from an earlier estimate of -5.5% to -7.5%. The budget airline also cut its revenue forecast for the .
Airlines have lost the pricing power they commanded last summer when capacity was more constrained coming out of , even though demand has been strong.
Now they face what is traditionally a slower travel demand period. warned Wednesday that "in recent weeks, sales have been trending below historical seasonality patterns," and for the quarter.
Shares of American, Spirit and Frontier fell Wednesday. Frontier's stock hit a new 52-week low.
Fare-tracking company Hopper on Tuesday said it expects fares to continue dropping in the fall shoulder season, with domestic U.S. tickets averaging $211 in September and October, down 30% from the peak of summer.
and cut their third-quarter forecasts earlier this month.
Airlines start reporting third-quarter results in mid-October.
