Airline industry labor shortage ‘driving prices for consumers higher,’ expert warns
Airline costs, capacity and consolidation are key issues in the industry, Peter McNally said
Labor shortage in airline industry ‘driving prices for consumers higher’: Expert
Third Bridge global sector lead Peter McNally argues that the labor shortage won’t be ‘quickly’ resolved and is unfortunately ‘here with us to stay.’
Third Bridge global sector lead Peter McNally joined "Mornings with Maria" Tuesday, arguing that the labor shortage in the airline industry is "driving prices for consumers higher," and won’t be "quickly" resolved.
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PETER MCNALLY: The argument that Frontier and Spirit… [have] been making about merging them is that they want to grow. They want to add jobs, and they think by joining forces, they can compete with the much larger airlines… in the industry. It would become the fifth-largest airline in the United States… [which]… is a different presentation that they're making to regulators. JetBlue is going to increase its regulatory risk here by effectively doubling down.
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Third Bridge global sector lead Peter McNally told FOX Business that the labor shortage won’t be ‘quickly’ resolved and is unfortunately ‘here with us to stay.’ (Joe Cavaretta/Sun Sentinel/Tribune News Service via Getty Images / Getty Images)
They have this Northeast alliance that they're pursuing with American [Airlines] that the DOJ is looking at, and now they're trying to convince Spirit that they can handle this… merger as well. But capacity… that's driving fares higher is actually limited by the labor situation… it's pilots and cabin crews… those kinds of factors that… is driving prices for consumers higher.
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Airline cost, capacity and consolidation key issues in industry: Expert
Third Bridge global sector lead Peter McNally provides insight into how the U.S. economy is impacting the airline industry.