US Airlines’ Capacity Growth Disguises Key Adjustments

The first quarter of each year is always challenging for airlines in the Northern Hemisphere as demand drops and they seek to stimulate demand with aggressive pricing while handling the complications of seasonal weather disruption and subsequent increases in operating costs. This year will be no different, but as some airlines begin to see a softening in demand, the US market is about to see a change of administration and some analysts are questioning “where next for the low-cost…