Domestic leisure travel demand back to pre-pandemic levels, airline CEOs say
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."
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.
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Choose to earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + the option to earn 4% back in Bilt Cash on everyday purchases |
Pros
- Choice to earn up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and the option to earn Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 90 days + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.