US airline CEOs play down demand concerns after United's dour forecast

US airlines on Tuesday tried to reassure investors about the strength of travel demand, a day after United Airlines stoked worries about the industry's pricing power. Even as executives in other sectors of the economy have warned of recession risks, airline CEs until now have remained upbeat as consumer travel demand stayed strong. But United's unexpected profit warning caught investors by surprise. "To have an airline warn of weaker growth starts to put the service sector of the economy closer in alignment with the goods sector, and paint a weaker picture for investors," said Jack Ablin, chief investment officer at Cresset Capital. United's CEO Scott Kirby on Tuesday tried to explain away the change in the quarterly outlook, saying at a JPMorgan investor conference that the company's earlier forecast was a "bad" one. Other airline chiefs told the conference that they were still optimistic. Delta Air Lines CEO Ed Bastian said in the past 30 days, the airline has recorded 10 highest sales days in its history. "If anyone's looking for weakness, don't look at Delta," Bastian said. Delta reaffirmed its first-quarter outlook, saying travel demand is strong and getting stronger. American Airlines CEO Robert Isom said the Texas-based carrier was enjoying "tremendous" demand. Month-on-month increase in airfare in February was the fastest in nine months, according to the US Labor Department. Airline ticket prices have gone up due to persistent capacity constraints and an unending thirst for travel after pandemic-related restrictions ended. That has helped carriers mitigate cost pressures.<br/>