American, Southwest Flag Inflationary Risks After Reporting a Travel Rebound

American, Southwest Flag Inflationary Risks After Reporting a Travel Rebound
A Southwest Airlines jet sits at a gate at Orlando International Airport in Orlando, Fla., on Oct. 11, 2021. Joe Skipper/Reuters
Reuters
Updated:

American Airlines and Southwest Airlines on Thursday warned mounting inflationary pressures could overshadow strong holiday demand and delay a complete return to profit.

Both the Texas-based carriers posted a smaller-than-expected loss in the third quarter, but said rising fuel prices as well as higher labor costs are hurting earnings in the quarter through December.