“The expected strong demand for December materialized below expectations”
That's what JetBlue said today, leading to a slump in airline shares today.
Yesterday airlines also fell after the CPI report showed falling prices in the month, another sign of softening demand.
The picture isn't clear though with Delta yesterday forecasting a 15-20% jump in 2023 revenue.
The first half of 2023 will be all about threading the needle: The market won't hate signs of demand falling enough to halt inflation but if the pendulum swings too far towards a recession there will be demand fears.