The persistent demand for air travel, as stated by United Airlines Holdings Inc. (UAL stock) is expected to contribute to the company’s profit until the end of the year, countering concerns of a broader economic downturn.
The airline company headquartered in Chicago announced on Tuesday that it anticipates its operating profit margin will exceed pre-pandemic levels in the fourth quarter of this year. The company cited factors such as hybrid work, which has given customers more flexibility to travel for leisure more frequently, as the reason for this expectation.
The Chief Executive Officer of United (NASDAQ: UAL), Scott Kirby, was quoted as saying in a statement that “despite mounting fears about an economic slowdown, the ongoing Covid recovery trends at United continue to prevail.”
In recent weeks, officials from airlines have been quoted as saying that concerns about the economy do not appear to have dampened appetites for travel, and that an increase in ticket costs has not discouraged customers from making reservations.
According to officials from several airlines, demand for travel during the autumn has been stable, which includes demand for vacations and leisure travel, and business travel is beginning to show signs of improvement. Last week, Delta Air Lines Inc. said that their company’s revenues got a lift following Labor Day, and by the end of September, they had grown to approximately 80% of what they expected to be for 2019.
However, airlines’ expansion has been stifled as a result of delayed jet deliveries and backlogs that have developed in the process of hiring and training new staff. This has resulted in a reduced supply of tickets. United stated on Tuesday that it believes that the growth limits facing the sector might endure for years, and that the post-Covid rebound in demand as well as more flexible work arrangements that allow for increased travel are trends that are here to stay.
United (NASDAQ: UAL) stated that it made a profit of $...
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