The obesity treatment market, featuring drugs like Wegovy and Mounjaro, is experiencing rapid growth. As a result, U.S. airlines could save up to $580 million in fuel costs this year due to lower passenger weight.
On Thursday, Bloomberg and CNBC reported that Jefferies’ airline and transportation sector analyst team, led by Sheila Kahyaoglu, shared this analysis with investors in an airline industry research report on January 12.
The report reveals that the obesity rate among American adults has declined for three consecutive years, while the number of adults reporting the use of obesity medications has doubled.
According to the report, a 10% decrease in average passenger weight could reduce overall aircraft takeoff weight by about 2% (approximately 3,200 pounds) and fuel costs by up to 1.5%. This could potentially boost weekly net profits by as much as 4%.
This figure is significant, considering that fuel costs account for 19% of the total operating expenses for the four major U.S. airlines: American Airlines, Delta Air Lines, United Airlines, and Southwest Airlines.
These four airlines are projected to consume about 16 billion gallons of fuel in 2026. Assuming an average fuel price of $2.41 per gallon, the total fuel cost would amount to approximately $39 billion.
Airlines have long focused on reducing aircraft weight, as it’s a crucial factor in fuel efficiency.
For example, in 2018, United Airlines switched to lighter paper for its in-flight magazine, Hemispheres, reducing each copy’s weight by one ounce. This change was expected to save about 170,000 gallons of fuel annually, equivalent to approximately $290,000 in fuel costs at the time.
The report noted that these estimated savings do not account for potential losses from reduced snack sales due to fewer overweight passengers.