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Outlook 2023: North American airlines exhibit optimism, despite market challenges

Analysis

Aviation operators in North America are embarking on 2023 with an optimistic sentiment as the rebound in demand shows no signs of slowing down.

Those airlines are striking a bullish tone, despite lingering fuel cost uncertainty and the potential for economic headwinds to emerge.

In the US, many airlines are bracing for labour cost inflation as pilots negotiate new agreements that include significant wage increases. The hikes in pay are occurring at both regional and network airlines, and salaries for regional pilots are on par with pay scales at ultra-low cost carriers.

Canada's market continues to strengthen, and the country's airlines are working to position themselves to capitalise on the strong demand.

Both new start-ups and incumbents alike are working to position themselves for fierce competition.

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