With Q1 2025 underway, US airlines are navigating a shifting market landscape, particularly with a growing preference for premium cabin travel. Some airlines are scaling back seat capacity, while others are expanding aggressively. Financial performance remains mixed, with Delta Air Lines leading in profitability.
Capacity Changes Among Major US Airlines
Airlines Reducing Capacity
According to OAG travel data, four of the 13 major US airlines have cut capacity in Q1 2025 compared to the previous year. These include:
- Southwest Airlines (-4.4%)
- JetBlue Airways (-4.1%)
- Spirit Airlines (-14.9%)
- Sun Country Airlines (-11.5%)
The decline in capacity reflects industry-wide trends, including:
- A shift towards premium cabin offerings by many airlines.
- Spirit Airlines’ financial struggles, including its Chapter 11 bankruptcy filing in November 2024.
- Sun Country Airlines’ focus on cargo expansion, particularly with its extended partnership with Amazon.
Airlines Expanding Capacity
Conversely, some airlines have increased their seat availability:
- Delta Air Lines (+3.7%)
- United Airlines (+5.7%)
- Frontier Airlines (+10%)
Smaller low-cost carriers have seen even higher growth rates:
- Allegiant Air (+14%)
- Avelo Airlines (+19.5%)
- Breeze Airways (+53.1%)
Avelo Airlines, for example, is expanding aggressively by opening 14 new airport markets this quarter while also discontinuing 11 other markets. This strategy reflects the competitive nature of the low-cost airline segment.
Leading Airlines by Seat Capacity
Despite shifting market trends, American Airlines remains the largest US carrier in terms of seat availability, with over 60.2 million seats in Q1 2025. Meanwhile, Alaska Airlines and Breeze Airways have surpassed Spirit Airlines and Sun Country Airlines, respectively, in total capacity.
Financial Performance and Market Trends
Delta Air Lines Reports Strong 2024 Results
Among the major airlines, Delta Air Lines was the first to publish its Q4 2024 and full-year financial results. Key highlights include:
- $3.4 billion net profit (non-adjusted) in 2024.
- Revenue of $61.6 billion for the full year.
- Expected Q1 2025 revenue growth of 7% to 9% YoY, driven by increasing capacity and unit revenue.
Other Airlines’ Financial Outlook
- Southwest Airlines has expressed optimism for 2025 revenue growth, citing strong demand and strategic initiatives.
- American Airlines and JetBlue provided positive investor updates in December 2024 but will release detailed Q4 and full-year results on January 23 and January 28, 2025, respectively.
- Some private airlines do not publicly disclose their financial data, but information from the Bureau of Transportation Statistics (BTS) offers additional insights.
The US airline industry is entering 2025 with significant shifts in market strategy. While low-cost carriers like Spirit Airlines and JetBlue are adjusting to financial pressures, full-service airlines such as Delta and United are capitalizing on premium cabin demand. Meanwhile, smaller carriers like Breeze and Avelo are adopting aggressive expansion strategies to capture market share.
With financial reports from major airlines still pending, Q1 2025 will be a crucial period to evaluate industry performance and future growth trends.
