Passengers at LaGuardia Airport in New York on June 30, 2022.
Leslie Josephs | CNBC
While the aviation industry has been in the spotlight recently due to safety issues, airline executives say demand for flights shows no signs of slowing.
United Airlines The carrier’s chief commercial officer, Andrew Nucella, said on an earnings call Wednesday that “as an airline and as an industry” it will carry a record number of passengers this summer. Alaska Airlines Revenue forecasts for 2024 came ahead of estimates on Thursday as the airline expanded capacity by 3 percent over the previous year.
“Demand continues to be strong, and we look forward to record spring and summer travel with the 11 best-selling days in our history,” Delta Air Lines CEO Ed Bastian said on a company call a week ago. are happening in this calendar year.” American Airlines And Southwest Airlines Results report on 25th April.
Demand for air travel has remained resilient despite persistent inflation that has weighed on household budgets, as well as high-profile safety issues that have sparked congressional hearings and from late-night television to TikTok. Have become part of the joke.
Public and regulatory scrutiny of the industry increased following the explosion of a door plug. Boeing 737 Max 9 in January. This sparked a new safety crisis for Boeing and slowed the delivery of new planes to airlines.
United Airlines itself is undergoing a safety review with the Federal Aviation Administration after several incidents this year, including a tire that fell off one of its older Boeing 777s.
Airlines, which make the bulk of their money in the spring and summer, are also reeling from high fuel and labor costs, with fresh contracts giving pilots and other workers massive raises after years of stagnant pay. is done
Nevertheless, the demand for international tours and the resurgence of corporate travel have helped boost global carriers. Both Delta and United’s second-quarter forecasts beat Wall Street estimates. Executives said customers appear willing to pay for first class and other cabins above standard coach.
Nocella said on Wednesday’s earnings call that the airline could further divide the front of the plane, as United and other airlines have done with coach. “You have a lot of teams of people working on how to innovate more and provide more choice and monetize that choice on our behalf, obviously, in the future,” he said. They said.
Delta, meanwhile, has said premium revenue growth has outpaced standard-coach sales for years.
Delta, United and American announced upgraded first and business class cabins as well as more and larger lounges to accommodate the growing number of passengers willing to pay for higher-priced tickets or elite status or higher-fee rewards credit cards. What is it.
Delta is set to open a new, more exclusive tier of airport lounges later this year.
Domestic-focused and low-cost airlines are due to report results in the coming weeks. Some of these carriers have struggled in recent months due to overcapacity, limited aircraft availability and high costs.
Credit : www.cnbc.com