Airlines Summit Takes: Prices at the Pump Haven't Stopped the Party Yet

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Airlines Summit Takes: Prices at the Pump Haven't Stopped the Party Yet

USA | Airlines EquityJuneResearch9, 2026

Airlines Summit Takes: Prices at the Pump

Haven't Stopped the Party Yet

We hosted 10 companies with 62 attendees at our 6th annual Jefferies Airlines

Summit. Key takes: 1) Demand remains resilient despite fare increases to cover

higher jet fuel costs; 2) Premium demand continues to lead; 3) Investment

focused on enhancing the onboard product; 4) Capacity trims focused on

unprofitable flying at higher fuel, but cuts relatively moderate to-date; and 5)

Pilot unions NT priorities include safety and upcoming contract negotiations.

No Demand Degradation So Far. Despite multiple rounds of base fare increases and fuel .

surcharges in select regions, demand for air travel has remained resilient with no point on the

curve seeing discernible demand degradation. Frontier noted the co. has participated in multiple

industry fare increases and demand has remained strong even against this higher fare backdrop.

ULCC expects the industry to continue working toward 100% fuel recovery by late 2026/early 2027.

Allegiant mgmt flagged that demand remains "exceptional" across the network, driven by broad-

based strength including new markets, with no specific geography standing out as weak.

Premium Demand Appears Less Elastic. Premium demand has outpaced main cabin over the past

several years and the segment appears to be less elastic vs. economy options against the high fare

backdrop w/ premium revs continuing to lead YTD. While LATAM is experiencing healthy demand

across its network, mgmt noted particular strength across premium and corporate. Separately, US

ULCC Breeze would add 4-8 seats to its first-class Ascent offering (currently a 12-seat cabin) given

current performance.