US airline majors to add capacity despite unit cost rises. Is "capacity discipline" history already?

Nothing remains stable in the airline industry; even dynamic equilbrium is an elusive goal.

Thus, despite having a bullish view of demand and a positive outlook for 2014, the major US airlines are expecting both cost creep and capacity increases - usually not a combination that pleases investors hoping for continued sustainability among the country's airlines.

But the US major network carriers are repeatedly stressing the efficiency ("discipline") of their capacity growth since the bulk of the expansion is attributable to aircraft up-gauge or adding slimmer seats to increase density of existing aircraft, and stressing their actions are by no means a return to the days of introducing irrational supply into the market place. The hybrid carriers JetBlue and Alaska continue to grow in the mid-to-high single digit range in FY2014 while Southwest still aims for flat capacity growth.

Those carriers, along with American, Delta and United are projecting unit cost increases for FY2014, citing various reasons for the creep - including IT investment and wage increases. Perhaps with a gradually improving US economy, the airlines collectively feel that their capacity increases will be easily absorbed and revenue momentum can help offset some of the cost pressure. But then again....