Weight loss pills could save US airlines $580 million/year

Weight loss medications, such as Ozempic, have transformed the lives of millions of people with easy-to-apply treatments and quick results.

Now, it turns out, the pounds lost could also bring an unexpected benefit for airlines: lower fuel costs as slimmer passengers reduce the overall weight of aircraft.

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According to a study published last week by Jefferies, a financial services company, the four largest airlines in the United States — American Airlines, Delta Air Lines, Southwest Airlines and United Airlines — could together save up to $580 million a year on fuel thanks to weight-loss drugs known as GLP-1.

Sheila Kahyaoglu, an equity analyst at Jefferies and one of the study’s authors, said the findings did not surprise her, as airlines are already looking for any way to reduce the weight of their aircraft.

“It stands to reason that the weight of passengers also affects costs,” she said.

One in eight adults in the United States said they were using a GLP-1 in a November survey published by KFF, a nonprofit health research organization.

Fuel is among the biggest expenses for airlines. The Jefferies study estimates that the four companies will together consume 16 billion gallons of fuel in 2026, at a total cost of US$38.6 billion, almost 20% of their total expenses.

The savings generated by leaner passengers would correspond to just 1.5% of fuel costs. Still, airlines and pilots need to analyze even the smallest changes in an aircraft’s weight and balance, and a lighter payload means each jet burns less fuel to generate the thrust needed to fly.

Investors could also benefit: Researchers estimated that a 2% reduction in aircraft weight could increase earnings per share by about 4%.

Kahyaoglu said he does not expect airlines to buy less jet fuel as a result of the study’s findings. But he said weight-loss drugs could eventually lead to changes in the way airlines generate additional revenue, especially if passengers buy fewer snacks.

In the past, airlines such as Air New Zealand, Finnair and Korean Air have been criticized for weighing some passengers at the boarding gate to help calculate weight and balance. This practice is a little more common on aircraft that carry fewer passengers, where a small change in weight distribution can affect how the plane flies.

But even among major airlines, efforts to cut weight and save money have sometimes bordered on the extreme. Four decades ago, for example, American removed a single olive from each passenger’s salad, saving $40,000 a year in food and fuel costs.

“Airlines have a history of closely monitoring aircraft weight savings, from olives (pitted, of course) to the type of paper used,” the report says. “Passengers’ waist circumference has, until now, been beyond their control.”

None of the big four airlines have commented.