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Domestic leisure travel demand back to pre-pandemic levels, airline CEOs say

March 31, 2021
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2 min read
Alaska Airbus A320-200 aircraft seen at Los Angeles
Domestic leisure travel demand back to pre-pandemic levels, airline CEOs say
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The travel recovery is officially here, two airline CEOs said on Wednesday.

Speaking at the U.S. Chamber of Commerce Aviation Summit, United Airlines CEO Scott Kirby said 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."

Kirby confirmed that the airline would see cashflow return to positive levels for the month of March, something the airline suggested was a possibility in an SEC filing earlier this month.

Notably, even as domestic leisure travel recovers, business and long-haul travel remain severely depressed.

"Business demand is still down over 80%, 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."

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More :From battling ‘frenemy’ Delta to Oneworld to Virgin America, outgoing Alaska Air CEO leaves his mark

During a press conference marking Alaska Airlines' inclusion in the Oneworld alliance, CEO Ben Minicucci was similarly optimistic, noting that the airline would earn positive cash flow for the month.

Although the airline typically sees about 30% of its customers traveling for business, and the rest for leisure or to visit friends and relatives, Minicucci said that the airline currently sees leisure demand recovering faster, something in line with what other industry insiders have observed.

Notably, leisure travel tends to offer significantly lower yields than price-agnostic business travel, while domestic flying does not always offer the same profits as long-haul travel.

Still, the booming demand — including current flying and forward bookings, as Americans book summer trips in anticipation of being vaccinated by then — is a welcome sign for airlines and the broader tourism industry.

Airlines are adding new routes and enhancing existing ones to take advantage of the summer demand — United is flying more than 100% of its 2019 capacity to Mexico, the Caribbean and Central America, and South America, where some countries have reopened to Americans.

Featured image by SOPA Images/LightRocket via Gett
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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  • Packed with credits foodies will enjoy
  • Solid welcome bonus

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  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
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  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
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  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
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  • Annual Fee is $325.
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