âť“WHAT HAPPENED: Airlines may see cost savings on fuel if weight loss drugs contribute to lighter passengers, according to a Jefferies Research Services analysis.
👤WHO WAS INVOLVED: Jefferies Research Services, major U.S. airlines including American, Delta, Southwest, and United, and weight loss drug manufacturers.
đź“ŤWHEN & WHERE: The analysis comes as weight loss drugs like Ozempic and Wegovy gain popularity in the United States.
đź’¬KEY QUOTE: “Airlines have a long history of searching for unique methods to reduce the weight of the aircraft, in turn reducing fuel consumption and limiting an airline’s largest cost bucket,” analysts said in the report.
🎯IMPACT: A 10 percent slimmer society could lead to $580 million in annual fuel savings for the top four U.S. carriers.
Airlines could benefit financially if weight loss medications lead to lighter passengers, as fuel costs are directly tied to the weight of an aircraft. Jefferies Research Services—a global research, macro strategy, and equity insights firm that advises major investors—recently analyzed the potential savings and found that slimmer passengers could reduce fuel consumption and boost airline earnings.
The analysis notes that a 10 percent reduction in average passenger weight could lower total airline passenger weight by two percent, resulting in a 1.5 percent reduction in fuel costs and a four percent increase in earnings per share. For the top four U.S. airlines—American, Delta, Southwest, and United—this could mean $580 million in annual fuel savings.
Using a Boeing 737 Max 8 as an example, Jefferies calculated that a 10 percent slimmer passenger base would decrease the aircraft’s takeoff weight from 181,200 pounds to 177,996 pounds. This weight reduction translates into significant savings, as airlines spend billions annually on jet fuel, and profits are often dependent on the companies meeting very slim margins.
“Airlines have a long history of searching for unique methods to reduce the weight of the aircraft, in turn reducing fuel consumption and limiting an airline’s largest cost bucket,” the report noted. While airlines can control many aspects of weight reduction, passenger weight has always been beyond their control.
The analysis comes as weight loss drugs like Ozempic and Wegovy gain popularity and become more widely accessible. “With the drug now available in pill form and obesity rates falling, broader usage could have further implications for waistlines,” the analysis notes regarding the widespread availability of GLP-1 drugs. The National Pulse reported in November of last year that President Donald J. Trump cut a deal to bring down prices for select weight loss medications. “This is a triumph for American patients that will save lives and improve the health of millions and millions of Americans,” he said during an Oval Office announcement.
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