US Airlines "Expert Call Recap: Insights From an Recent C-Suite Industry..."

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US Airlines "Expert Call Recap: Insights From an Recent C-Suite Industry..."

Global Research

9 June 2026ab

US Airlines Equities

AmericasExpert Call Recap: Insights From an Recent C-

Suite Industry Executive Airlines

Atul Maheswari

Analyst

atul.maheswari@ubs.com

We hosted an expert call with a recent C-suite executive of a North American +1-212-713 4103

airline (non-covered)

Thomas Wadewitz

The expert noted that a good portion of fare increases and demand strength this year is Analyst

simply catching up to the shortfall from 2025. In his view, the stickiness of current price thomas.wadewitz@ubs.com

increases is simply going to be determined by industry supply and network deployment +1-212-713 6116

from here. He expects the industry to be more measured with respect to supply additions

when fuel eventually moves lower. This is due to P&L challenges in the LCC space but

also due to lessons learnt from 2014-2016. Other important points from the discussion

included:

Capacity outlook: The executive is of the opinion that as fuel moves lower, its

unlikely that industry capacity addition will be to the same extent as in previous

lower fuel periods. The network players will probably bring back the capacity that

they have temporarily taken out this year. LCC and ULCCs are unlikely to add

capacity to the same degree as they did back in 2014-2016, which was the last

time fuel saw a material downward drift. Non-fuel costs have moved higher over

the past few years, which is going to limit margin capacity addition from the LCC/

ULCC space.

Spirit's liquidation and capacity backfill: The expert noted that other airlines'

capacity addition following Spirit's sudden cessation of service has been

measured. He has not seen any over the top activity from airlines. The executive