Cause and effect: a shortage of airline capacity and improving profit margins, Issue 144 Oct/Nov 2022

The easing of Covid restrictions has led to a significant uptick in passenger traffic. Shortfalls in labour, maintenance, reactivations and new aircraft deliveries are keeping airline capacity tight. Yet high traffic, load factors and fares are adding a degree of calm for airlines amid cancellations. The causes of capacity shortages are identified and addressed.