Archive

US airline executives have indicated that recovery in business travel has accelerated alongside gains in international and domestic passenger revenue.

Published: 21 Jun 2010

US airline executives have indicated that recovery in business travel has accelerated alongside gains in international and domestic passenger revenue.

Airline executives believe the clouds have parted for the embattled industry after the 2009 economic downturn and the 2008 oil price spike, reported Reuters.

According to a report filed by wsj.com, the improvement in sector fortunes also is seen as more sustainable than in previous downturns.

Corporate revenues are driving a considerable amount of the improvement, said Ed Bastian, president of Delta Air Lines. Bastian said that revenue from corporate sales was up 63 percent year-on-year through the end of May, and continued to strengthen. Unit revenue on flights to Asia jumped 50 percent in June, and was up 30 percent on trans-Atlantic services, he said.

Delta says its unit revenue will improve by double digits throughout the summer compared with a year earlier, although the rest of the year might fall short of that. That’s because the economy was starting to improve in the fall of 2009, making the comparisons less dramatic, Bastian said, according to The AP.

“The industry is turning the corner,” said Scott Kirby, president of U.S. Airways Group. “We’ve seen a dramatic recovery in the all-important business travel sector.”

Continental chief executive officer Jeff Smisek, too, said that the airline is benefiting from more corporate fliers and a higher average fare per mile.

United Airlines said it expects a key revenue measure will rise as much as 27 percent for the second quarter, according to a regulatory filing. United said its passenger unit revenue, which is passenger revenue for each available seat flown one mile, will be up between 26 percent and 27 percent for the quarter that ends June 30.