Business travel demand has “plateaued” but revenue continues to rise thanks to strong demand and capacity constraints, United Airlines CEO Scott Kirby told CNBC on Tuesday. Major companies, many in tech, have announced plans to cut back on spending, like business travel, or even lay off workers. San Francisco is one of United’s major hubs, along with Newark, New Jersey, Houston, Washington, D.C., and its home base of Chicago. “It feels like business travel, and this probably is indicative of pre-recessionary kind of behavior, has plateaued even though our total revenues are still going up,” Kirby said. Kirby said the carrier isn’t seeing a recession in its data but forecasts a “mild recession induced by the Fed.” “If I didn’t watch CNBC in the morning ... the word ‘recession’ wouldn’t be in my vocabulary, just looking at our data,” he said. In October, United forecast another profit for the last three months of the year thanks to strong demand. At the same time a lack of available aircraft and trained pilots have driven up airfare across the industry, helping return airlines to profitability. United’s Kirby reiterated that hybrid work models are shifting travel patterns to give workers that “have always had plenty of disposable income” the ability to travel since they’re not “tethered to their desks.” Retailers and travel companies are battling for consumer spending this holiday season, as households face rising costs for everything from housing to groceries. <br/>
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United Airlines CE Scott Kirby said a tentative contract agreement between rival Delta and its pilots union would set an industry pattern. "It's a rich contract but I think the really good news is it means we'll all get deals done essentially on the same terms and can move forward," Kirby told Reuters on the sidelines of an event in Washington late Monday. Delta struck a tentative deal Friday to give pilots a 34% cumulative pay increase in a new four-year contract. Kirby says the Delta agreement will push pilot wages up across carriers and be passed onto consumers in the form of higher airplane ticket prices. "The biggest news for an investor perspective is cost convergence in the industry means that what is different now is all the low cost carriers are going to have come up to these much higher pay rates," Kirby said. "This is going to wind up like oil prices -- it's going to be a pass through." Kirby said demand is still strong for airplane tickets, which he noted are cheaper today than over the last 15 years. "Prices are still in historical terms 40-50% lower in real terms," Kirby said. "They are going to go up but it's still going to be the best value of your travel," he said, comparing flights to hikes in hotels, rental cars and theme park tickets. Delta's contract offer also includes a lump-sum one-time payment, reduced health insurance premiums, and improvements in holiday pay, vacation, company contributions to 401(k) and work rules.<br/>
Cabin staff at Portugal's flag carrier TAP will go on strike on Thursday and Friday to demand higher wages after pay cuts under the airline's recovery plan, the SNPVAC union said, adding it would schedule more walkouts later. "We want an end to the financial constraints to which workers are being subjected. The 25% salary cut we suffered due to the company's restructuring plan is unacceptable, especially given current inflation levels," SNPVAC head Ricardo Penarroias told Reuters on Tuesday. The union had previously warned TAP of this week's possible labour action, leading to the cancellation of 360 flights by the company on those two days, and on Tuesday confirmed it would go ahead with the stoppage. Thursday is a public holiday in Portugal. TAP usually flies around 300 flights a day. Penarroias said cabin crews would also stage walkouts on at least five more days until the end of January, but the exact dates are yet to be specified. The union is also demanding the company unfreeze pay progression, and respect maternity leave and rest periods. Surging inflation across Europe has led to millions of workers struggling with higher costs of living, prompting unions to demand pay increases, often via strikes and protests. The pace of consumer price growth slowed in November in Portugal but inflation is still near three-decade highs.<br/>
Almost a year has passed since India’s biggest conglomerate bought Air India, promising to turn it into a world-class airline. Reviving the carrier and winning over passengers won’t be easy. A run of 15 years without profit has taken its toll. While Air India remains a high-profile operator in one of the world’s biggest aviation markets, customer complaints about a decline in standards have hurt its reputation. Reports of incidents such as ants and rats on planes, cockroaches in food and even a bat (animal, not cricket) flying around a cabin mid-journey haven’t helped. Tata Group, which paid 180b rupees ($2.2b) to buy Air India back from the government, has a five-year transformation plan called Vihaan -- Sanskrit for new dawn. UK-based FutureBrand was last week brought in to help with the makeover, which could include dropping the airline’s “outdated” Maharajah mascot, local media reported. There’s a “desperate need to improve its product and service,” said Shashank Nigam, CEO of airline brand-strategy firm SimpliFlying.“To win both the hearts and wallets of customers, Air India needs to get this right. If you’re looking for a step change, that will probably come around 2024.” Campbell Wilson, who shifted from Singapore Airlines’ low-cost unit to become Air India CEO over the summer, told reporters recently that aircraft interiors will be refurbished, including seats, cushions and carpets. Nigam said Air India needs to position itself as a progressive brand that caters to younger people, which is particularly important given India’s demographics and sheer size of its young population. By previously branding itself as the custodian of Indian culture and heritage, the airline gave off an impression of being old fashioned and stuck in time, he said, adding that its fleet is old and “needs urgent rejuvenation.” As part of the reinvention, new style rules have been issued for cabin crew, including a requirement for male attendants to shave their heads if they have deep receding hairlines or bald patches. Blonde hair “is strictly not permitted” for female crew. Meanwhile, a huge order for aircraft is also in the works and the carrier has leased dozens of planes.<br/>