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
host
of

safety
issues,
airline
executives
say
there
is
no
sign
of
slowing
demand
for
flights.

United
Airlines


“as
an
airline
and
as
an
industry”
will
carry
record
numbers
of
travelers
this
summer,
the
carrier’s
Chief
Commercial
Officer
Andrew
Nocella
said
on
an
earnings
call
Wednesday.


Alaska
Airlines
on
Thursday

forecast
2024
earnings
ahead
of
estimates
as
the
airline
expands
capacity
3%
over
last
year.

“Demand
continues
to
be
strong,
and
we
see
a
record
spring
and
summer
travel
season
with
our
11
highest
sales
days
in
our
history
all
occurring
this
calendar
year,”

Delta
Air
Lines
CEO
Ed
Bastian
said
on
his

company’s
call
a
week
earlier.


American
Airlines
and


Southwest
Airlines
report
results
on
April
25.

Air
travel
demand
has
been
resilient
despite
persistent

inflation
that
has
weighed
on
household
budgets,
as
well
as
a
spate
of
high-profile
safety
issues
that
have
sparked

congressional
hearings
and
have
become
the
butt
of
jokes
from
late-night
television
to
TikTok.

Public
and
regulatory
scrutiny
of
the
industry
increased
after
a

door
plug
blew
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
from
one
of
its
older
Boeing
777s.

Airlines,
which
make
the
bulk
of
their
money
in
the
spring
and
summer,
have
also
been
grappling
with
higher
costs
of
fuel
and
labor,
with
fresh
contracts
giving
pilots
and
other
workers

large
raises
after
years
of
stagnant
pay.

Nonetheless,
demand
for
international
trips
and
rebounding
corporate
travel
have
helped
boost
global
carriers.
Both
Delta
and
United’s
second-quarter
forecasts
outpaced
Wall
Street
estimates.
Customers
appear
willing
to
pay
up
for
first
class
and
other
cabins
above
standard
coach,
executives
said.

Nocella
said
on
the
earnings
call
Wednesday
that
the
airline
could
further
segment
the
front
of
the
plane,
much
like
United
and
other

airlines
have
done
with
coach. “You
have
many
teams
of
people
working
on
how
to
further
innovate
and
provide
more
and
more
choice
and
to
monetize
that
choice
on
our
behalf,
obviously,
in
the
future,”
he
said.

Delta,
meanwhile,
has
said
premium
revenue
growth
has
outpaced
sales
from
standard
coach
for
years.

Delta,
United
and


American


have
announced

upgraded
first-
and
business-class
cabins
as
well
as
more
and
larger
lounges
to
accommodate
swelling
numbers
of
travelers
willing
to
pay
up
for
higher-priced
tickets
or
elite
status
or
high-fee
rewards
credit
cards.

Delta
is
slated
to
open
a
new,

more
exclusive
tier
of
airport
lounge
later
this
year.

Domestic-focused
and
low-cost
airlines
are
scheduled
to
report
results
in
the
coming
weeks.
Some
of
those
carriers
have
struggled
in
recent
months
because
of
higher
capacity,
limited
airplane
availability
and
higher
costs.