The Reuters- Staff shortages, airport chaos and higher fuel costs have caused earnings at U.S. airlines like JetBlue Airways to drop below analysts expectations while hotel chains like Marriott International are reporting double-digit profit growth.
Consumers eager to travel and book flights after the pandemic keep coming back, despite cutbacks in other categories due to recession worries. Hotels have been able to turn this demand into increased profitability more efficiently than airlines.
David Tarsh, a travel data analytics company spokesman, said that the problems faced by airlines and airports are harder to solve than those in the lodging industry.
He said that in the case of labor in hospitality, your shortage is probably more with less skilled workers than in the case of the aviation 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 fill these roles. People need to be trained. The U.S. carriers are struggling to offset higher costs such as fuel, even though booming travel demand has given them strong pricing power.
JetBlue Airways Corp reported a quarterly adjusted loss of 47 cents per share compared to analysts' predictions of an 11 cent loss.
United Airlines Holdings Inc, American Airlines Group Inc. and Delta Air Lines Inc reported quarterly profits that were less than predicted by analysts.
Hotel bookings are surging. Marriott International Inc. surpassed Wall Street estimates for quarterly revenue and profits, helped by higher occupancy levels and room rates as travelers booked more group travel and longer stays.
During the last month, Hilton Worldwide Holdings saw its profit rise above pre-pandemic levels. MGM Resorts International reported a profit of 25% higher than in the second quarter of 2019 and said staff shortage problems seemed to be easing.
We're generally in good shape. "We are not running around with our hair on fire anymore," Bill Hornbuckle, MGM Resorts CEO, said in Wednesday's earnings call.
Host Hotels Resorts Inc, which operates hotels under the Four Seasons, Grand Hyatt and Ritz Carlton brands, reported profit of 36 cents per share, higher than analysts' predictions.
Total revenue growth for Thanksgiving is up in the double digits. For Christmas, we are seeing a solid pickup, said Jim Risoleo, Host CEO on Thursday.