United Airlines CEO Scott Kirby and Alaska Airlines CEO Ben Minicucci say the travel industry’s recovery from the coronavirus pandemic is here – even if the virus is still hanging around.
According to the aviation blog The Points Guy, both men expressed optimism while speaking at the U.S. Chamber of Commerce Aviation Summit. Kirby went so far as to say that demand for domestic leisure travel was back at pre-pandemic levels.
“Domestic leisure demand has almost entirely recovered,” Kirby said. “It tells you something about that pent-up desire to travel, the pent up desire to remake those connections.”
In fact, he’s so optimistic about the demand that he added the airline would end the month of March with positive cashflow.
Business travel, of course, is another story.
“Business demand is still down over 80 percent, and of course international borders, particularly long-haul, are still closed,” he said. “So those are huge chunk of our business that are still almost at zero, but it’s really nice to see that recovery.”
Minicucci struck the same note, saying Alaska Airlines would also have positive cashflow for March. But for his airline, business travel is only about 30 percent of its sales so the recovery of leisure travel will happen more quickly.
On a price scale, leisure sales produce far less revenue than business travel but airlines have added hundreds of new routes to vacation destinations to help make up for the difference and add more volume to leisure.
