Airlines temper flying ambitions after chaotic — but profitable — travel rebound
The leaders of the country’s biggest airlines learned a hard lesson this summer: it’s easier to make plans than to keep them. The three biggest US carriers — Delta, United and American — are dialing back their flight growth ambitions, an effort to fly more reliably after biting off more than they could chew this year as they chased an unprecedented rebound in travel, despite a host of logistical and supply chain constraints as well as staffing shortages. The cuts come as airlines face elevated costs that they don’t see easing significantly just yet, along with the possibility of an economic slowdown and questions over spending by some of the country’s biggest corporate travelers. United Airlines estimated it would restore 89% of 2019 capacity levels in Q3, and about 90% in Q4. In 2023, it will grow its schedule to no more than 8% above 2019′s, down from an earlier forecast that it would fly 20% more than it did in 2019, before the Covid-19 pandemic hamstrung travel. “We’re essentially going to keep flying the same amount that we are today, which is less than we intended to, but not grow the airline until we can see evidence the whole system can support it,” United CEO Scott Kirby said after reporting results Wednesday. “We’re just building more buffer into the system so that we have more opportunity to accommodate those customers.” American Airlines CEO Robert Isom also spoke of a “buffer” after reporting record revenue on Thursday. That carrier has been more aggressive than Delta and United in restoring capacity but said it would fly 90%-92% of its 2019 capacity in Q3. Delta, for its part, apologized to customers for a spate of flight cancellations and disruptions and said last week said it would limit growth this year. It earlier announced it would trim its summer schedule. On Wednesday, Delta deposited 10,000 miles into the accounts of SkyMiles members who had flights canceled or delayed more than three hours between May 1 through the first week of July.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2022-07-22/star/airlines-temper-flying-ambitions-after-chaotic-2014-but-profitable-2014-travel-rebound
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Airlines temper flying ambitions after chaotic — but profitable — travel rebound
The leaders of the country’s biggest airlines learned a hard lesson this summer: it’s easier to make plans than to keep them. The three biggest US carriers — Delta, United and American — are dialing back their flight growth ambitions, an effort to fly more reliably after biting off more than they could chew this year as they chased an unprecedented rebound in travel, despite a host of logistical and supply chain constraints as well as staffing shortages. The cuts come as airlines face elevated costs that they don’t see easing significantly just yet, along with the possibility of an economic slowdown and questions over spending by some of the country’s biggest corporate travelers. United Airlines estimated it would restore 89% of 2019 capacity levels in Q3, and about 90% in Q4. In 2023, it will grow its schedule to no more than 8% above 2019′s, down from an earlier forecast that it would fly 20% more than it did in 2019, before the Covid-19 pandemic hamstrung travel. “We’re essentially going to keep flying the same amount that we are today, which is less than we intended to, but not grow the airline until we can see evidence the whole system can support it,” United CEO Scott Kirby said after reporting results Wednesday. “We’re just building more buffer into the system so that we have more opportunity to accommodate those customers.” American Airlines CEO Robert Isom also spoke of a “buffer” after reporting record revenue on Thursday. That carrier has been more aggressive than Delta and United in restoring capacity but said it would fly 90%-92% of its 2019 capacity in Q3. Delta, for its part, apologized to customers for a spate of flight cancellations and disruptions and said last week said it would limit growth this year. It earlier announced it would trim its summer schedule. On Wednesday, Delta deposited 10,000 miles into the accounts of SkyMiles members who had flights canceled or delayed more than three hours between May 1 through the first week of July.<br/>
