Airline executives predict a record summer and even more demand for first class

While the aviation industry has been in the spotlight lately for a series of safety issues, airline executives say there are no signs of slowing demand for flights.

united airlines “as an airline and as an industry” will carry a record number of travelers this summer, the airline's chief commercial officer, Andrew Nocella, said on an earnings conference call Wednesday. Alaska Airlines on Thursday forecast 2024 earnings above estimates as the airline expands capacity 3% from last year.

“Demand continues to be strong and we see a record spring and summer travel season with our highest 11 days of sales in our history occurring this calendar year,” Delta Air Lines CEO Ed Bastian said on the call. your company a week before. american airlines and Southwest Airlines report results on April 25.

Demand for air travel has been resilient despite persistent inflation that has weighed on household budgets, as well as a series of high-profile safety issues that have sparked congressional hearings and become targets. of pranks from late night TV to TikTok.

Public and regulatory scrutiny of the industry increased after a door stopper came out of a boeing 737 Max 9 in January. That sparked a new safety crisis for Boeing and slowed its deliveries 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 most of their money in the spring and summer, have also been grappling with higher fuel and labor costs, with new contracts giving pilots and other workers big raises after years of stagnant salaries.

However, demand for international travel and the recovery in corporate travel have helped boost global airlines. Both Delta and United's second-quarter forecasts beat Wall Street estimates. Customers appear willing to pay for first class and other above-standard cabins, executives said.

Nocella said on Wednesday's earnings call that the airline could further segment the front of the plane, as United and other airlines have done with tourism. “There are a lot of teams of people working on how to innovate more and offer more and more options and monetize those options on our behalf, obviously, in the future,” he said.

Meanwhile, Delta has said premium income growth has outpaced sales of standard buses for years.

Delta, United and American have announced upgraded first and business class cabins, as well as more and larger lounges to accommodate a growing number of travelers willing to pay for higher-priced tickets or elite status credit cards or high-fare rewards.

Delta is scheduled to open a new, more exclusive lounge level at the airport later this year.

Domestic and low-cost airlines are scheduled to report their results in the coming weeks. Some of those airlines have struggled in recent months due to increased capacity, limited aircraft availability and higher costs.