Issue Summary

As September approaches, the world’s airlines can’t help but wonder what lies ahead. More of the same demand strength that propelled the industry to strong springtime profit margins — margins that for most carriers exceeded those of both the second quarters of 2022 and 2019? Or is demand finally cooling off, as some carriers have recently suggested? Ominously, fuel prices are spiking again. More helpfully, supply-side barriers to capacity growth — while frustrating for individual airlines — are keeping yields elevated across the industry. And these barriers aren’t going away anytime soon.