The 2025 airline sector is tightening fast as the Federal Aviation Administration (FAA) ordered a 10% cut in flight capacity across 40 major U.S. airports in early November. That reduction hit right as peak holiday shipping builds, squeezing domestic air cargo space and forcing carriers and logistics firms to rethink routes and timelines. The restrictions have since been eased, but the FAA is now investigating potential violators, and air traffic controller shortages persist.
Citigroup, however, is looking past the immediate turbulence and talking about a potential “Supermajors Super-Cycle” in airline stocks. This supercycle essentially means several years when demand, pricing, and margins tilt in favor of the largest carriers.
