According to a new analysis by Jefferies, airlines could achieve significant fuel savings if the increased use of weight-loss medications leads to a reduction in passenger weight. As GLP-1 weight-loss medications become more available in the United States, analysts suggest that the broader impact could extend beyond the healthcare sector to affect aviation costs. Fuel consumption is directly tied to an aircraft's weight, including passengers, baggage, and cargo, meaning even slight reductions can translate into substantial savings. Airlines have long sought to minimize weight wherever possible to cut fuel use, from using lighter materials in cabins to minor changes in meal services. However, passenger weight has historically been beyond their control. Jefferies noted that medications like Ozempic and Wegovy could bring a tangible change to this equation. If these medications result in a 10% leaner population, the total passenger weight on flights would decrease by about 2%. According to the analysis, this reduction would translate into a 1.5% fuel savings for airlines and a projected 4% increase in earnings per share. Jefferies estimates that weight reduction could save the top four U.S. airlines approximately $580 million annually in fuel costs. These companies are expected to spend a combined $38.6 billion on jet fuel this year. Jefferies stated that the updated analysis follows a similar report from 2023 and comes as pharmaceutical companies expand weight-loss treatments to include pill forms.
