The U. S airline executives said that there has been a recovery in the business travel that brought about gains in the revenues from international as well as domestic passengers and also bringing down concerns about the high fuel prices.
These gains in the sectors is more sustainable than the downturns that took place earlier even as low cost aircrafts companies like Southwest Airlines co. have slowed down their plans of expansion. The president of Delta Air Lines Inc, the largest carrier of the country, Ed Bastian said “"Corporate revenues are driving a considerable amount of the improvement.”
At an industry conference today, Bastian said that the revenues received from all the corporate sales went up by at least 63% all through the end of May, going about year on year. Not just that, it still continued to strengthen further. In June, the unit revenue of flights witnessed a hike of 50% to Asia and on the trans-Atlantic services, it was up by 30%.
Delta drove up its estimate for the operating margin (second quarter) from 10% to 11% from the forecast in April that showed 8% to 10%.
The revenue received foe each seat of the passenger flown for a mile would jump by about 20% as stated by Delta at the Bank of America-Merrill Lynch conference in New York. “The industry appears to be turning a corner,” US Airways Group Inc. President Scott Kirby told investors at the conference. “We’ve seen a dramatic recovery in business travel
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