The surge in popularity of weight loss medications in recent years has brought unexpected benefits to US airlines, which are now projected to save millions.
With a significant number of Americans shedding weight rapidly thanks to these drugs, airlines are experiencing a positive impact. Though the weight loss solution isn’t flawless due to potential side effects or challenges in maintaining the weight loss, it has been transformative for many, enhancing their quality of life and physical capabilities.
Interestingly, airlines have also reaped benefits from this trend. According to a study by Jefferies, major carriers such as American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines could collectively save up to $580 million annually on fuel costs.
The study highlights that a lighter aircraft, attributed to reduced passenger weight, consumes less fuel. This is because less energy is required to lift the plane into the air. Sheila Kahyaoglu, the study’s author and a Jefferies equity analyst, mentioned that this was expected, as fuel represents a major expense for airlines.
The research suggests that this fuel efficiency could eventually lead to financial gains for investors, with an estimated 2 percent decrease in aircraft weight potentially increasing earnings per share by about 4 percent. However, Kahyaoglu clarified that she doesn’t anticipate airlines purchasing less fuel despite these findings.
As the availability of weight loss drugs like the Wegovy pill increases, the trend is expected to continue.
While some have been content with injections, the newly introduced pill offers a less invasive alternative, effectively curbing appetite and stabilizing blood sugar levels to assist with weight loss. Due to the manufacturing process, the pill is anticipated to be more affordable, broadening access for those seeking weight loss solutions.
Currently, the cost of the lowest dose is $149 per month, with prices for higher doses yet to be disclosed. Novo Nordisk’s trials involving 1,300 participants revealed that about a third lost at least 20 percent of their body weight over 64 weeks.