Disney Brass Says Soaring Gas Prices Not Hit Parks Yet But “Mindful Of Macro Uncertainty Consumers Are Facing”
“We haven’t seen any change in consumer behavior from elevated gas prices thus far, and aren’t currently seeing a material impact on the remainder of the fiscal year,” was the word from Disney’s CFO Hugh Johnston on the company’s fiscal second quarter earnings call.
The price of gasoline at the pump is up over 40% and there’s a shortage of jet fuel, which has doubled in price since the war with Iran started in late February. Executives led by new CEO Josh D’Amaro were peppered with questions by analysts about any impact on parks, which require travel.
Disney World’s forward bookings are “pacing up strongly,” Johnston said. “However, we’re mindful of the macro uncertainty consumers are facing and we’re not immune to the impacts, including how a significant further rise in fuel prices from current levels could eventually lead to changes in consumer behavior. If that possibility were to occur, each business has levers in place to make adjustments in order to help offset those kinds of macro pressures.” He did specify the levers.
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