Breeze sees softer bookings as airline growth outpaces fall travel demand

US airlines have scheduled too many flights this fall for the number of travelers, Breeze Airways founder and CEO David Neeleman said. This is pushing down airfares just as fuel prices are rising and putting pressure on airline profits. “There’s a lot of people traveling [this fall] but you just have to fill that extra 20% of seats,” he told The Airline Observer founder Brian Sumers at the Skift Global Forum in New York on Wednesday. “Fares have come down as fuel prices have gone up, and that’s challenging.” US domestic airline seats are scheduled to increase nearly 8.4% from 2022 levels in the fourth quarter, according to Cirium Diio schedule data. That comes after a 8.6% increase in the third quarter. Compared to 2019, capacity will be up 2.5% in the September quarter and 4% in the December quarter. The number of travelers was up on average 3% from 2019 levels this month, according to the latest TSA screening data. At the same time, the price of jet fuel was up nearly 50% to $3.17 per gallon on September 26 from its bottom in May, according to data from airline industry trade group Airlines for America (A4A). Fuel and labor are the two largest expenses for airlines. Neeleman is the latest executive of a US budget airline to highlight weak travel demand this fall. Frontier Airlines and Spirit Airlines surprised the market earlier in September when they both forecast losses in the third quarter, which is historically a strong end-of-summer travel period. They cited increased “promotional activity” — in other words, fare sales — weak close-in bookings, and the rise in fuel prices for their outlooks. Demand is “soft but we’re looking forward to a good winter,” Neeleman said.<br/>