1056 ET - Airlines might be forced to contract their supply for peak spring and summer travel seasons, even though they've held off doing so at this point, Melius Research says. Airlines have held supply firm because the decline in air-travel demand happened quickly, the cost of fuel is still low and they were heading into peak travel seasons where they didn't want to miss out on revenue, the analysts say. They see industry supply growth of 2.5% in 2Q, up from 1% in 1Q into a much more challenging macro backdrop. Now that tariffs are here, United and Delta would be prudent to slow supply, the analysts say, which would likely prompt peers to follow suit. (katherine.hamilton@wsj.com)
(END) Dow Jones Newswires
April 07, 2025 10:56 ET (14:56 GMT)
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