US EditionHow weight-loss drugs could save American airlines billions
Jefferies projects a 1.5% fuel cost reduction for major U.S. airlines from lower passenger weights due to weight-loss drug use, saving $580 million in 2026.
- Jefferies' analysis found the four major U.S. airlines would consume 16 billion gallons of fuel costing $38.6b, nearly 20% of expenses, but passenger slimming would cut fuel costs by only 1.5%.
- A KFF survey found one in eight U.S. adults took GLP-1 weight-loss drugs amid celebrity use, but patients paying out of pocket face high costs unlikely to change soon.
- Historically, airlines and pilots have pursued weight savings through measures like weighing passengers and removing a single olive from salads, as lighter payloads reduce fuel burned.
- Jefferies researchers found a 2% aircraft weight reduction could boost earnings per share by about 4%, while Kahyaoglu said airlines' onboard revenue may shift if passengers buy fewer snacks.
- Passenger trends mean passengers' average weight trends have largely been out of airlines' business models' control, and even if passengers slim, Jefferies says savings are modest relative to total fuel costs.
23 Articles
23 Articles
Airlines have 580 million reasons to like GLP-1 weight-loss drugs, analysis finds
Airlines stand to save a potential $580 million as travelers slim down thanks to the effects of weight-loss drugs, a new study found.Sheila Kahyaoglu, an equity analyst at Jefferies and an author of the study, says the top four U.S. airlines, American Airlines, Delta Air Lines, Southwest Airlines and United Airlines, stand to save money each year because the lessened weight will lower fuel costs."Airlines have a history of being vigilant around …
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Weight loss medications like Wegovy and Ozempic could save them more than US$580 million a year.
Report links 'fat shot' to shrinking airline fees, but skeptics have doubts · American Wire News
A new report is linking weight-loss medications to decreased airline fees as more Americans lose weight than ever before. Weight-loss drugs like GLP-1s are making it easier than ever to shed those pesky pounds, and the resulting loss may be a huge gain for people looking to fly. According to a report from Jefferies Research Services, cited by CBS News, the national slimdown will result in lower fuel consumption costs, a saving that can be passed…
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