Hawaiian, JetBlue and Southwest see some weakness in demand heading into 3Q2012

Some US carriers are conceding slight softness in leisure demand and yields as the typically weaker travel period ushered in at the beginning of Sep-2012 continues to take hold. Against the backdrop of the diminished demand is an underlying concern by all carriers of rapidly rising fuel prices that continue to drive a hard to manage volatile pricing environment. Yet despite the softness cited by some of the lower-cost airlines operating in the US, their growth plans remain unchanged as they prepare for new market roll-outs beginning in 4Q2012 to coincide with some typical improvement in demand patterns.

The overall sentiment among the US lower-cost carrier group appears to be less bullish than the outlook expressed by the country's legacy airlines. Those carriers believe demand remains relatively stable as 3Q2012 comes to a close, and for the moment expect that stability will continue throughout the remainder of 2012.