Fewer Flights, Higher Fares, More Travelers: The July 4 Squeeze

U.S. airlines are cutting capacity going into the Fourth of July travel period, even as demand remains high despite rising airfares.

Domestic capacity is down 2%, while international capacity is down 2.1%, according to aviation intelligence firm IBA. The trend is more visible among low-cost carriers: Their domestic capacity is down by 9.1% this year versus 2% for full-service carriers.

The most recent data shows a rightsizing in capacity since Spirit Airlines’ collapse. Ultra-low-cost and low-cost carriers have been cutting back on underperforming routes and focusing on a select number of markets as they look to turn a profit. JetBlue, for example, said it would end