This paper studies the relationship between demand uncertainty — the key source of excess capacity — and capacity utilization in the U.S. airline industry. We present a simple theoretical model that predicts that lower demand realizations are associated with higher demand volatility. This...

Slot controls (restrictions on the number of departing and arriving flights) are implemented at over 200 capacity constrained airports worldwide to mitigate persistent congestion and delays. However, evidence is limited regarding the effectiveness of these policies. This paper uses a...