A man leaves the Four Seasons Hotel, which was later clarified by the official Twitter channel of President Donald Trump as not the Four Seasons location mentioned for the press conference of the legal team, in Philadelphia, Pennsylvania, States Joined on November 8, 2020. The press conference was held. at the Four Seasons Total Landscaping company in Philadelphia. REUTERS/Mark Makela
Aug 5 (Reuters) – Staff shortages, airport chaos and higher fuel costs caused earnings at U.S. airlines such as JetBlue Airways to fall below analysts’ expectations, while hotel chains including Marriott International reported double-digit profit growth.
Despite cuts in other categories due to recession concerns, consumers eager to travel after the pandemic continue to book flights and hotels. Hotels have been able to turn this demand into increased profitability much more effectively than airlines.
David Tarsh, spokesman for travel data analysis company Forward Keys, said the problems faced by airlines and airports are more difficult to solve than those in the accommodation industry.
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“In the case of work in hospitality, your shortage is probably more with less skilled workers than in the case of the aviation industry,” he said. “If you don’t have enough cabin crew and there are few security people at the airport, you can’t just increase wages and suddenly fill these roles. To see also : Israel’s high-tech funding fell in the first half amid fears of a global recession. People also have to be trained.”
U.S. carriers are struggling to offset higher costs, such as fuel, even as growing travel demand has given them strong pricing power.
JetBlue Airways Corp ( JBLU.O ) on Tuesday reported a quarterly adjusted loss of 47 cents per share compared with analysts’ forecasts of a loss of 11 cents.
United Airlines Holdings Inc ( UAL.O ), American Airlines Group Inc ( AAL.O ) and Delta Air Lines Inc last month reported quarterly profits below analysts’ expectations.
Meanwhile, hotel bookings are on the rise. Marriott International Inc ( MAR.O ) on Tuesday beat Wall Street estimates for quarterly revenue and profit, helped by higher occupancy levels and room rates as travelers booked more group trips and longer stays. read more
Last month, Hilton Worldwide Holdings ( HLT.N ) saw profit rise above pre-pandemic levels. On Wednesday, MGM Resorts International ( MGM.N ) reported a 25% higher profit than in the second quarter of 2019 and said staff shortage problems appeared to have eased.
“Overall, we’re in decent shape. We’re not running with our hair on fire anymore, if you will,” MGM Resorts CEO Bill Hornbuckle said on Wednesday’s earnings call.
Host Hotels & Resorts Inc ( HST.O ), which operates hotels under the Four Seasons, Grand Hyatt and Ritz Carlton brands, reported profit of 36 cents per share, topping analysts’ forecasts.
“We’re in the double digits in terms of total revenue (growth) for Thanksgiving. And actually, for Christmas, we’re seeing a solid pickup as well,” Host CEO Jim Risoleo said in a call with analysts. Thursday.
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Report by Gigi Zamora; Edited by Anna Driver and Cynthia Osterman
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