The Demand Party: When Will it End?

The Demand Party: When Will it End?

March 2023
31 min read
Jay Shabat

Issue Overview

They said it again: Demand remains exceedingly strong. Nearly all U.S. airlines presented to investors last week, sounding universally bullish about the upcoming spring and summer peaks. They talked about elevated yields. They talked about constricted supply. They talked about industry revenues as a percentage of GDP still far below trend. But they also talked—with less cheerfulness—about spiking labor costs.