Issue Summary

When Texas was booming during the era of high oil prices, airlines flocked to cities like Houston. Today, they’re flocking to California instead, as United’s capacity shift from Houston to San Francisco makes clear. Last week, Reuters reported that California has just surpassed France to become the world’s sixth largest economy, thanks to 4% annual output growth, roughly double the U.S. national average. But do airlines recognize the boom? You’d better believe it. Seat capacity from California airports next quarter, according to Diio Mi schedule data, is up a robust 9% y/y. Seats from Texas airports, by contrast, are down…