Delta and United face slackening demand for international flights originating outside USA

Top US airlines report that demand for US-originating international flights remains strong, though data suggest that fewer international travellers are visiting American cities. Both Delta Air Lines and United Airlines said during recent earnings calls that their international businesses have yet to be hit by slowing growth and market volatility related to the US-ignited trade war on most of the world’s countries. But some cracks are emerging, particularly for US-inbound flights. Delta earlier this month warned that its growth has “largely stalled” as it plans to cut passenger capacity and curb fleet and workforce growth, with demand softness apparent in its main cabin on both international and domestic routes. United, meanwhile, disclosed on 15 April plans to trim capacity from its domestic network in response to slowing demand for flights between US cities. But demand for international travel is humming along, United executives say. The Chicago-based airline reports that its first-quarter revenue per available seat kilometre increased 4.7% year-on-year for transatlantic flights and 8.5% for flights in the Asia-Pacific region. CCO Andrew Nocella reports “modest declines in non-US-origin passenger volumes for the second quarter”, with United’s traffic originating in Europe down 6% compared with last year. Canadian-origin passenger volumes in the second quarter are down year-on-year 9%, but Nocella says “US-origin demand has more than compensated for these reductions”. <br/>