Capacity growth to hinder US airlines’ profits, supports lease rates

Strong capacity growth in the US is likely to impact US airlines’ fares and profits in the year ahead, according to Bloomberg Intelligence reports. Aircraft utilisation is around 94-95% of 2019 levels as capacity continues to grow along with strong traffic figures, which in turn has supported aircraft lease rates and market values for all categories. In addition, the continued supply chain issues have further bolstered lease rates. “US airlines’ domestic schedules are set for robust increases in 2Q-3Q, which may pressure fares, hurting profit,” the report said. “The full-service carriers will add the most, seemingly dispelling fears of an