Macroeconomic conditions are squeezing US airlines and travelers just in time for the summer travel season. 

Higher fuel costs due to the conflict in the Middle East are pushing up ticket prices. The latest Consumer Price Index report showed fares rose by about 3% in April. Meanwhile, choices for cheap seats decreased when Spirit Airlines went out of business in May. The ultra low-cost carrier blamed soaring energy prices. What does this uptick in energy inflation mean for airlines’ profits and travelers’ wallets? 

 Nic Owens is an equity analyst for Morningstar and covers the North American airlines.

April CPI Report Shows Inflation Broadening As Energy Spike Impact Spreads

On this episode:

00:00:00 Welcome

00:01:21 Energy prices and airline profit outlooks

00:02:40 How this summer's travel demand stacks up 

00:04:01 Which Big Four airlines are most and least vulnerable 

00:05:44 Who will compete for Spirit's former customers

00:07:00 Tips for travelers  

00:08:51 What Morningstar’s analyst thinks about airline stocks

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