Morningstar DBRS warns rising fuel, delivery delays and maintenance costs will pressure
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Morningstar DBRS released a sector analysis on Monday that highlights rising fuel costs, delivery delays and higher maintenance expenses widening the gap between strong and weak airlines in Europe.
Assistant Vice President Andrea Petroczi‑Urban said the fuel shock is cyclical but supply‑chain bottlenecks and maintenance costs will keep the gap widening until 2027, noting that IAG and Air France‑KLM have hedging ratios of about 70 % and 67 % in the second half, falling to 40 % in 2027, while United Airlines and American Airlines have no formal hedging policy and are directly exposed to price swings; United expects to recover 80‑90 % of higher fuel costs in the third quarter. The analysis also notes Spirit Airlines was liquidated in May and Air Baltic filed for Chapter 11 creditor protection in mid‑September.