“No matter what the headlines have been, no matter how the market has performed, we always find bookings that are the fastest, fastest, and largest recoveries in these markets,” said Vasu Raja, American chief revenue officer.
United expects to be able to make money with a 35 percent decline in business and long-haul travel abroad. (Both are currently down around 80 percent.) The airline’s chief executive Scott Kirby said he was confident that United would beat 2019 earnings in 2023.
While airlines in the US are optimistic about the future, companies in other parts of the world are still struggling. According to the International Air Transport Association, supply and demand in North America are likely to recover more rapidly this year than in any other region in the world. Demand for flights operated by North American airlines is projected to decline by around 42 percent this year, while airlines in regions such as the Middle East and Europe, where most of the flights are cross-border, are seeing demand drop by more than 66 percent can count said.
However, the flying experience in the US in the coming months will differ significantly from that in 2019. Airlines are likely to maintain many of their pandemic policies, including requiring passengers to wear masks. Some people on domestic flights may find themselves on the larger jets that were previously only used for long international trips.
Flight paths can also look different. During the pandemic, passengers tended to prefer outdoor destinations – beaches, mountains, ski slopes – in states that did not have strict lockdown rules. Few have traveled to the parts of the northeast, California, and major cities that have largely remained closed, but that could change as these areas open up. New York City recently suspended a quarantine request for international travelers and announced this week it is spending $ 30 million on a global marketing campaign to lure tourists back.
While some small airlines closed during the pandemic, large companies managed to get by. Congress gave the industry more than $ 50 billion to employ pilots, flight attendants, baggage handlers, and other workers. The government also provided $ 25 billion in loans. All of these aids came with conditions, including a prohibition on share buybacks, restrictions on dividends and restrictions on executive compensation.
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