Recent news from Southwest Airlines that it is scaling back planned growth through year-end will help keep domestic capacity in check as costs rise, but similar moves will be needed by peers to cement what analysts believe is a necessary market correction. “Looking forward, domestic capacity continues to appear challenged despite” Southwest’s cuts, Morgan Stanley analysts wrote. The Dallas-based carrier said June 4 that full-year 2018 capacity will be 4% above 2017, a ...

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