Weight-loss medications are becoming increasingly popular in the United States, and they could have a surprising impact on the airline industry. According to a report by the Wall Street firm Jefferies, these drugs could save U. S. airlines up to $580 million in fuel costs this year alone.
The report specifically mentions GLP-1 medications, which were originally designed to treat type 2 diabetes but have also been found to aid in weight loss. With a 10 percent reduction in passenger weight, top airlines like United and Delta could see a 1. 5 percent decrease in fuel costs and a 4 percent increase in earning per share. This is significant considering that the top four airlines in the country are projected to spend $38. 6 billion on jet fuel this year.
The rising popularity of GLP-1 medications is evident – a November survey by KFF revealed that one in eight U. S. adults are now taking these drugs for either weight loss or to treat a chronic condition. This is an increase from previous years, and the survey also noted that over half of GLP-1 users struggle with the cost of these medications.
In an effort to make these drugs more affordable, the Trump administration recently struck a deal with two manufacturers to lower GLP-1 costs for Americans on Medicaid and Medicare, as well as those who purchase the drugs through the new TrumpRx website.
The Jefferies analysis also mentions that U. S. obesity rates are declining and some GLP-1 medications are now available in pill form, making them more accessible to a wider population. The firm notes that this could have further implications for weight loss.
Interestingly, this is not the first time airlines have looked for ways to cut weight and save on fuel costs. In the past, airlines have made small adjustments, such as removing one olive from each dinner salad (saving American Airlines $40,000 a year) and printing in-flight magazines on lighter paper (saving United Airlines 170,000 gallons of fuel).
Overall, the use of weight-loss medications could have a significant impact on the airline industry and their efforts to save money. With a slimmer population and more accessible medications, airlines may see even greater savings in the future.