ALL EYES ON AIRLINES AS JULY FOURTH HOLIDAY WEEKEND NEARS

Airlines that have stumbled badly over the last two holidays face their biggest test yet of whether they can handle big crowds when July Fourth travelers mob the nation's airports this weekend.

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Problems were popping up well before the weekend, with some disruptions caused by thunderstorms that slowed air traffic.

American Airlines canceled 8% of its flights on Tuesday and Wednesday, and United Airlines scrubbed 4% of its schedule both days, according to FlightAware.

Holiday revelers planning to drive face their own set of challenges, including high gasoline prices. The nationwide average has eased since hitting a record $5.02 in mid-June to $4.86 a gallon on Thursday, according to AAA, which expects prices to continue to ease because of rising gasoline inventories.

Americans are driving a bit less. Gas demand last week was down about 3% from the same week last June, according to government figures. In a Quinnipiac University poll in June, 40% of those surveyed said gas prices have caused them to change their summer vacation plans.

Air travel in the U.S. is almost back to pre-pandemic levels. Since last Saturday, an average of nearly 2.3 million people a day have gone through airport checkpoints — down just 8% from the same days in 2019. If that trend continues through the weekend, records will be set for flying in the pandemic era.

Airlines may not have enough planes and flights to carry all of them, especially if there are cancellations due to weather, crew shortages or any other reason.

“Airlines are learning the hard way that there is a severe price for over-optimism,” said Joseph Schwieterman, a transportation expert at DePaul University. “They are on the edge of a cliff this holiday.”