• Wed. Sep 21st, 2022

Labor shortage in airline industry ‘pushing up prices for consumers’, expert warns

ByKimberly A. Brochu

May 17, 2022

Third Bridge Global Business Leader Peter McNally joined ‘Mornings with Maria’ on Tuesday, saying labor shortages in the airline industry are ‘pushing up prices for consumers’ and will not be not resolved “quickly”.

JETBLUE HOLIDAY PACKAGES EXCEED PRE-PANDEMIC VOLUMES, SAYS TRAVEL PRODUCTS PRESIDENT

PETER MCNALLY: The argument that Frontier and Spirit… [have] what they think about their merger is that they want to grow. They want to create jobs, and they think that by joining forces, they can compete with the much bigger airlines…in the industry. It would become the fifth largest airline in the United States… [which]…is a different presentation they make to regulators. JetBlue will increase its regulatory risk here by effectively doubling down.

Third Bridge Global Sector Head Peter McNally told FOX Business that the labor shortage will not be resolved “quickly” 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 pursue with American [Airlines] that the DOJ is considering, and now they’re trying to convince Spirit that they can handle this…merger too. But the capacity…that drives up fares is actually limited by the labor situation…it’s pilots and cabin crew…those kinds of factors that…drive up prices for consumers.

WATCH THE FULL INTERVIEW BELOW: