U.S. airlines are offering fewer seats over the July 4 holiday, signaling a more selective approach as they focus on profitability even with travel demand remaining strong.

Scheduled seats between June 27 and July 4 are down slightly from a year ago, according to data from aviation intelligence and advisory company IBA Group Ltd. Domestic capacity fell 2%, while international seats declined 2.1%. The steepest cuts came from low-cost carriers, whose domestic seat capacity dropped 9.1%.

The data reinforces a broader shift that has played out across the industry this year. Delta Air Lines Inc. and United Airlines Holdings Inc. have repeatedly emphasized premium demand over filling every seat, while executives have said they are willing to trim flying to protect fares. U.S. carriers have been scaling back growth after domestic pricing weakened and geopolitical tensions, including conflict in the Middle East, weighed on international travel.

The liquidation of budget carrier Spirit Aviation Holdings Inc. has also reshaped the competitive landscape. Rather than replacing Spirit’s capacity one for one, airlines have selectively added service where they see the strongest returns.

Frontier Group Holdings Inc. has expanded aggressively, with scheduled seats up 18.2% from a year earlier, while United is up 3.3%, American Airlines Group Inc. is up 2.5% and Delta is roughly flat, according to IBA.

“With the adjustment to Spirit’s exit still taking shape, growth is becoming more cautious, capacity more deliberate, and the focus appears to be shifting from adding seats to improving yield,” Dan Taylor, IBA’s head of consulting, said in a Friday news release.

The U.S. Transportation Security Administration expects to screen roughly 18.7 million travelers at U.S. airport security checkpoints between June 30 and July 6, with the highest passenger volume of more than 3 million on July 2.

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