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US airlines face mixed fortunes as market shifts toward premium cabins
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U.S. airport terminal | Provided photo

United States-based airlines are navigating a unique period in the first quarter of 2025 as the market shifts towards premium cabins. According to travel data company OAG, four of the 13 major carriers have scheduled fewer seats this quarter compared to last year. Southwest Airlines, JetBlue, Spirit Airlines, and Sun Country Airlines have all reduced their capacity.

Spirit Airlines, which filed for Chapter 11 bankruptcy in November 2024, cut its seat capacity by 14.9%. Meanwhile, Sun Country Airlines has focused on expanding its cargo network with Amazon, adding eight Boeing 737-800 freighters through an amended agreement.

Conversely, some airlines are increasing their capacity. Delta Air Lines, Frontier Airlines, and United Airlines have expanded their quarterly seats by 3.7%, 10%, and 5.7% respectively. Smaller carriers like Allegiant Air and Avelo Airlines have also seen significant growth.

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"Changes in a low-cost airline’s network from winter to summer seasons are fairly standard in all markets," an industry expert noted regarding these shifts.

American Airlines remains the largest U.S. airline with over 60.2 million seats in Q1. Alaska Airlines and Breeze Airways surpassed their competitors Spirit and Sun Country respectively in terms of capacity.

Financially, Delta Air Lines reported a full-year net profit of $3.4 billion for 2024 with revenues reaching $61.6 billion. Glen Hauenstein of Delta expressed optimism about Q1 revenue growth driven by increased capacity.

Southwest Airlines anticipates strong revenue trends continuing into 2025 following positive results from tactical initiatives in late 2024.

American Airlines and JetBlue are expected to announce their financial results later this month after providing optimistic updates to investors last December.

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