Wells Wheels Up: Wetherbee's Airline Weekly

Research evidence excerpt

Wells Wheels Up: Wetherbee's Airline Weekly

Equity Research

Industry Update — May 14, 2026

Airlines

Risk to 2Q RASM?

Our Call Christian Wetherbee

Airlines are in a tough spot after 12 weeks of high fuel. Early demand softening could be Equity Analyst | Wells Fargo Securities, LLC

Christian.Wetherbee@wellsfargo.com | 212-214-8053

emerging, with TSA throughput down YoY for 5 straight weeks. The industry has never

Robert H. Salmon, CFAbeen more united on price, but passenger softness could introduce RASM risk.

Equity Analyst | Wells Fargo Securities, LLC

Robert.H.Salmon@wellsfargo.com | 212-214-5016

Demand Stressed by Fuel? Anecdotally, credit card trends and more directly, TSA Ryan Deveikis

throughput (-1.1% YoY, -5.1% 2-yr stack) point to decelerating demand into May. Associate Equity Analyst | Wells Fargo Securities, LLC

Reduced capacity (incl Spirit's exit) and elevated fuel continues to support a pricing floor, Ryan.Deveikis@wellsfargo.com | 212-214-8040

but collectively, airfare inflation could be starting to affect the consumer, especially on Matthew Hortopan

the low end/leisure. This was partly expected given demand elasticity, but if consumer Associate Equity Analyst | Wells Fargo Securities, LLC

sentiment wanes, 2Q RASM guides could see more risk. Matthew.F.Hortopan@wellsfargo.com | 212-214-5009

Watch Load Factors - If passenger throughput continues to soften on weaker bookings, Recent Airline Research:

particularly in domestic leisure, we view the impact as manageable despite some risk

Wells Wheels Up: Wetherbee's Airline Weeklyto RASM on softening load factors. Airlines are cutting capacity, with United and Delta

- Week 18leading efforts to limit downside. American has cut less, given planned capacity growth

and limited adjustments.