After a heatwave in New York, it looks like we will be seeing cooler weather and some rain during Memorial Day weekend. I plan on staying in the city ahead of a jam-packed travel schedule in the next two weeks, which includes the US CAPA Summit in Charleston and the IATA AGM in Rio de Janeiro.
For many travelers, high fuel prices aren’t stopping them from planning out their summer vacations. Domestic airfares are up around 30% compared to last year and all major U.S. airlines have implemented baggage fee increases to offset the surging price of fuel.
The Federal Aviation Administration said airlines will operate a peak of 5.4 million flights during the holiday weekend, with a peak of 54,000 flights on Thursday, May 21. American and United have also said they are expecting this summer to be record-breaking.
But there are some indicators that travel spending might be slowing. Much of the demand driving airlines’ profits is from premium travelers. And while airfare spending among middle- and high-income travelers is up, lower-income households are pulling back. A report from the Bank of America Institute described the trend as “resilient, but uneven.”
WEX + SKIFT
Airlines' payment infrastructure is becoming a key growth bottleneck. Without updating it, airlines risk falling behind on global expansion and digital retail ambitions.
EDITOR’S PICKS
Air India’s Outgoing CEO: ‘The Person That Takes Over Will Have Their Hands Full’
by Meghna Maharishi
May 21, 2026
A slew of geopolitical issues and intensified regulatory scrutiny following a deadly crash have derailed Air India’s plans for transformation. Wilson said the turnaround will “take some more time.”
Why Payments Have Become an Important Strategic Lever in Airline Distribution
by WEX + Skift
May 21, 2026
Airlines may be underestimating payments. As distribution grows more complex, payment infrastructure is becoming a bottleneck that shapes growth, partnerships, and the ability to deliver modern retail experiences.
Travel Brands Think They Have a Gen Z Problem. Most Have Two.
by Lindsey Roeschke
May 15, 2026
Reaching Gen Z is a distribution problem, resonating with them is a product problem. Few travel brands have figured out which one they actually have. Those that haven't are already losing ground — they just can't see it in the numbers yet.
SKIFT PODCAST NETWORK
Gordon Smith and Jay Shabat break down one of the most surprising stats in aviation right now — Iberia's operating margin is almost identical to Ryanair's.
A Spanish flag carrier that was once in the same conversation as Air India and Alitalia now posting budget airline-level profits? Jay makes the case that Iberia is the most underrated turnaround story in the industry, and most people haven't even noticed.
SKIFT TRAVEL 200
How are airlines performing around the world? The Skift Travel 200 pulls the data you need to know to understand the market. Paid subscribers get full access here.
