Airlines are also expected to protect margins by cutting unprofitable routes, while fares, which have surged since the outbreak of the Iran war, are unlikely to come down soon, Walsh said.

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Breeze Airrways Chief Executive David Neeleman, who has worked in the airline industry through some of its most turbulent periods, including the Sep 11, 2001, attacks in the US and the pandemic, had a cautiously optimistic tone when asked about the state of the aviation business.

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