The question of post- summer air travel demand was raised by executives of a couple of major U.S. airlines at the annual transportation conference.
Despite the busy summer travel season unofficially ending following the Labor Day weekend, Americans' still-pent-up travel demand is still driving bookings.
This summer, U.S. carriers have contended with an intensity of travel demand not seen since before the Pandemic; and the four-day Labor Day holiday period saw 8.76 million passengers screened through the Transportation Security Administration (TSA) checkpoint.
The start of a new school year typically means that families are taking less vacations after summer ends, a time when airlines rely more heavily on the business travel segment.
Patrick Quayle, senior vice president of United Airlines, told conference attendees that this year is bucking historical trends with no noticeable decrease in ticket sales between August and September. Quayle said that there was a strong September. It doesn't seem like summer has ended. The strength is that strong.
American Airlines CEO Robert Isom echoed Quayle's assertion that American's leisure bookings remain strong. Revenue and expense are tracking as expected. That's great news.
American has only reached 75% of its revenue levels for the year. Quayle said that business travel bookings are still below pre-pandemic levels, but that inflated airfare prices are driving revenue up. Business travel bookings are expected to increase as more employees return to the office, according to two executives.
Demand for international air travel is being looked at to shore up their revenues. The repeal of border restrictions by several Asian and Pacific countries has brought back strong demand for trans-Atlantic goods and services. Quayle said that when countries reduce entry requirements, they see robust demand.
Airlines have been able to raise fares due to strong leisure demand and limited supply, which people have been willing to pay for.
The airline industry won't be able to command such high prices with leisure demand historically diminishing in the autumn.
It only makes sense that warm-weather getaways stay on the menu into the autumn months with higher and higher temperatures each year. Booking levels could continue to sustain throughout the fall due to Americans' as-yet-unsatiated appetite for meaningful trips.
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