THE airline industry is unexpectedly staring at over half-a-billion dollars in savings coming from an unexpected source.
While the airlines themselves aren’t necessarily pushing for the change, they’re certainly reaping the benefits of a major trend emerging nationwide.
Thanks to widespread use of GLP-1 weight loss drugs such as Ozempic, American airline companies are set to save up to $580 million each year.
The savings would come from lower fuel consumption as a direct result of passengers lightening loads on aircrafts with their weight loss.
This savings figure represents what the nations four largest carriers would save combined, those being American Airlines, Delta Airlines, Southwest Airlines, and United Airlines.
With fuel being among the largest expense for airlines, experts agree that weight reductions will help in saving carriers money, wherever they come from.
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“It only makes sense that the weight of their passengers also impacts their costs,” said Sheila Kahyaoglu, an equity analyst at and author of the study from Jefferies that found these potential savings for airlines.
The same study estimates that the four airlines together will consume 16 billion gallons of fuel in 2026 for a total cost of $38.6 billion, an estimated 20% of their combined expenses.
While the potential fuel savings only reflect 1.5% of total fuel costs, potential exists for these seemingly miniscule savings to translate into large profits.
The researchers at Jefferies estimated that a 2% reduction in aircraft weight could boost earnings per share by roughly 4%, meaning shareholders take home more money.
Despite these findings, Kahyaoglu clarified that she doesn’t expect airlines to purchase less fuel as a result of the study.
However, she did conclude that weight-loss drugs could eventually lead to changes in revenue generation strategies.
What is Ozempic?
Semaglutide is a medication prescribed under brand names including Ozempic, Rybelsus, and Wegovy.
It was initially used as a treatment for diabetes but researchers discovered it can also be effective for weight management in adults who are obese or overweight.
Wegovy is currently the only FDA-approved brand for weight loss as it was developed to contain a high dose of Semaglutide, specifically for the treatment of obesity.
Semaglutide mimics the GLP-1 hormone, released in the gut in response to eating, according to UCLA Health.
The hormone prompts the body to make more insulin, which reduces blood sugar or glucose.
People who have diabetes commonly have high blood sugar levels and are at risk of developing nerve damage, kidney damage, as well as eye disease.
The GLP-1 hormone also interacts with the part of the brain that suppresses appetite, making it effective for weight loss.
Celebrities including Sharon Osbourne, Tracy Morgan, and Elon Musk have led the trend of using once-weekly Semaglutide injections to lose weight.
Common side effects include nausea, dizziness, constipation, and diarrhea.
But more serious, albeit rare, concerns include kidney failure, worsening vision, the development of thyroid tumors and even suicidal thoughts.
Two-thirds of users in a recent study regained their weight within a year of stopping the medication.
According to Diabetes.org, Ozempic is likely to be impacted by intermittent supply shortages globally running into 2025, as supply is currently not meeting demand.
