U.S. airlines are carrying lighter loads these days, and it could save them hundreds of millions in fuel costs.
The financial firm Jefferies published a study recently that found the four largest U.S. air carriers–American Airlines, Delta Air Lines, Southwest Airlines and United Airlines–could save as much as $580 million annually on fuel costs due to the prevalence of weight-loss drugs like Ozempic, known as GLP-1s. The New York Times highlighted the report on Monday.
As surprising as that may seem, it makes sense, considering how much airlines focus on their bottom line. They are constantly making adjustments to save weight on board.
“It only makes sense that the weight of their passengers also impacts their costs,” said an equity analyst at Jefferies.
How Much Savings From Skinnier Passengers?
With one in eight Americans taking a GLP-1, it stands to reason that airplanes are no longer transporting quite as much weight. Analysts at Jefferies calculated the four largest carriers will consume 16 billion gallons of fuel in 2026, costing $38.6 billion.
That amounts to 20 percent of their expenses.
Though savings from skinnier passengers would amount to just 1.5 percent of fuel costs, that’s still significant. The study found that a 2 percent decrease in aircraft weight could increase earrings per share by roughly 4 percent.
As the Times mentions, it is fairly common practice for captains and flight attendants on small planes to try and balance weight equally. International airlines such as Air New Zealand, Finnair and Korean Air have faced criticism for weighing some passengers before boarding.
Savings May Not Be Passed to Customers
Even though airlines may spend a little less on fuel in the coming years, they could lose money elsewhere. The Jefferies analyst told the Times that less hungry passengers could purchase fewer snacks.
If the dropped revenue from in-flight purchase surpasses the modest savings on fuel, prices could rise in other areas.
As mentioned, airlines and their shareholders are concerned with their bottom lines. Sometimes, their efforts to save money has bordered on absurd.
For example: in the 1980s, American removed a single olive from every passenger’s dinner salad. The move saved the airline $40,000 per year in food and fuel costs.
Of course, salads and meals are no longer offered on many domestic flights.
