Musings of an
Aviation Investor  — December 2023

A chasm appeared across the Atlantic over the Summer financial quarter in terms of airline financial performance with yield falls suffered in the North American domestic market contrasting to continuing robust fares in Europe as demand held up there for a second year post-Covid.

The drop in domestic US yields was dramatic, at c15%-20% for the LCCs, with unit revenues down so dramatically that they fell below the averages achieved by their European peers, whereas in recent years US airlines had realised generous premiums.