Issue Summary

Four major U.S. airlines have now reported their third-quarter results, including United, American, and Alaska Airlines last week. Together with Delta’s results the week before, the latest disclosures make several trends crystal clear. One is that longhaul international demand is having a moment, delivering extraordinary profits to carriers with overseas exposure. Domestic demand, however, though certainly not weak, has clearly softened from last year’s highs, especially since the start of autumn. Premium strength is evident across most markets, international and domestic. (It’s not just business travelers buying premium seats anymore, but leisure travelers too). On the cost side, discomfort is…