Money

Airlines are spooked about the sudden rise in fuel costs

Published

2 years ago

September 7, 2023

Southwest Airlines revealed concerns about softer August leisure bookings and joined two other major US airlines in issuing warnings regarding higher fuel costs anticipated in the third quarter due to a surge in crude oil prices.

The largest domestic carrier in the United States reported that August bookings fell within the lower end of its expectations, citing seasonal trends as one of the contributing factors. Nevertheless, the airline emphasized that overall leisure demand and yields remain robust.

In premarket trading, shares of Southwest declined by 4% before partially recovering to close down 2.6% at $29.97.

This announcement comes at a time when early indications suggest a weakening in domestic travel demand, with rising inflationary pressures impacting consumers. Meanwhile, airlines are facing challenges in retaining workers due to costly labor contracts.

United Airlines and Alaska Air Group have also voiced concerns about elevated fuel expenses in the current quarter, as crude oil prices recorded a third consecutive monthly increase in August, signaling a tightening supply.

In a regulatory filing, United Airlines noted that jet fuel prices have surged by over 20% since mid-July.

Regarding recent speculation, Southwest Airlines confirmed that it has no immediate plans to relocate its headquarters from Chicago to Denver, despite the purchase of 113 acres of land in Denver. The airline’s Finance Chief, Gerald Laderman, conveyed during the TD Cowen Transportation Conference that the primary focus is on expanding the flight training center in Denver.

Lower expectations

While Southwest maintains its outlook for a “solid (third-quarter) profit,” the airline has revised its expectations for revenue per available seat mile, a key indicator of pricing power, to a projected decline of 5% to 7%. This revision is compared to the previous forecast of a decline ranging from 3% to 7%.

Alaska Air anticipates a quarterly adjusted pre-tax margin of 10% to 12%, which is lower than the previously anticipated range of 14% to 16%.

It is important to note that most US airlines do not typically hedge against fuel costs, making them susceptible to the fluctuations in fuel prices.

Citi Research analyst Stephen Trent remarked, “The relatively quick up move in fuel has given the industry little time to respond through fares.”

[Keywords: Southwest Airlines, United Airlines, jet fuel costs, crude oil prices, domestic travel, labor contracts, revenue, headquarters relocation]

Money

Australia’s inflation report and Nvidia earnings impact explained

Australia’s inflation report sparks market shifts, influencing interest rates, the Aussie dollar, and investor sentiment amid Nvidia’s earnings.

Published

3 days ago

February 26, 2026

Harvey Vargas

Australia’s inflation report sparks market shifts, influencing interest rates, the Aussie dollar, and investor sentiment amid Nvidia’s earnings.

Australia’s latest inflation report is creating waves across the market, with questions about interest rates, the strong performance of the Aussie dollar, and the uneven nature of the stock market rally. Investors are watching closely as changes in carry trade risks this month add another layer of complexity.

David Scutt from StoneX discusses what these shifts mean for trading strategies and the broader economic outlook. He provides insight into how underlying factors are shaping investor confidence and market dynamics.

On the tech side, Nvidia’s upcoming earnings are expected to influence AI development and the broader tech sector. Coupled with trends in SaaS and bitcoin price action, these movements are signalling how investor sentiment is evolving in a fast-changing landscape.

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#AustraliaEconomy #InflationReport #AussieDollar #NvidiaEarnings #AIInvesting #StockMarketNews #BitcoinTrends #SaaSInsights

Money

U.S. stocks rally as AMD, Home Depot, and AI software lead gains

U.S. equities rose as AI disruption fears eased, with Home Depot, AMD, and DocuSign driving tech stock gains.

Published

4 days ago

February 25, 2026

Harvey Vargas

U.S. equities rose as AI disruption fears eased, with Home Depot, AMD, and DocuSign driving tech stock gains.

U.S. tech stocks surged as investors’ fears over AI disruption eased. Advanced Micro Devices jumped 9% after Meta announced a multiyear deal to deploy AMD’s graphics processing units for AI data centres. The move highlights growing corporate confidence in AI infrastructure investments.

DocuSign also rose 3% following Anthropic’s confirmation that Claude Cowork can integrate with DocuSign, Google Drive, and Gmail, signalling stronger adoption of AI tools across industries.

The iShares Expanded Tech-Software Sector ETF climbed 2% despite remaining over 30% below its 52-week high, showing tech stocks are recovering but still have room to run.

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Money

Stocks tumble amid AI concerns and Trump tariff update

Dow drops 800+ points as AI and trade worries hit tech and retail stocks; bonds rise amid market volatility.

Published

5 days ago

February 24, 2026

Harvey Vargas

Dow drops 800+ points as AI and trade worries hit tech and retail stocks; bonds rise amid market volatility.

Stocks plunged sharply as concerns over artificial intelligence and trade tensions rattled investors, sending the Dow down more than 800 points. Heavyweights like American Express, Goldman Sachs, and JPMorgan were key contributors to the drop.

Software companies were hit particularly hard after a report suggested AI could impact economic growth, triggering further losses across tech shares.

Trade-sensitive retailers including American Eagle Outfitters, Ralph Lauren, and Yeti Holdings also faced setbacks as market uncertainty spiked. Bonds, meanwhile, rallied as investors sought safety in a volatile market.

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