United Airlines Strong demand from travelers was witnessed in the second quarter despite higher ticket prices due to higher fuel prices, executives said on Thursday (July 16) during Earnings call.
“This quarter, United carried 10 of the highest passenger days in the company’s history, with the highest number being more than 640,000 customers carried on June 18,” United Airlines President Brett J. Hart He said during the call.
Mike Leskinen“United has not seen a measurable impact on demand based on higher fares,” United’s executive vice president and chief financial officer said during the call. “In fact, if you zoom out to look at travel price inflation over the past 10-20 years, airline fare stands out as tremendous value. Our customers increasingly want a better travel experience, and we believe they will continue to pay affordable prices for that.”
The airline has witnessed increasing demand across categories. Total revenue per available seat (TRASM) rose 12.1% year over year, indicating strong demand for its products. Andrew NocellaExecutive Vice President and Chief Commercial Officer of United Airlines said during the call.
“We have seen little to no impact on demand from higher price points, a trend we see continuing,” Nocella said.
In terms of passenger revenue per available seat (PRASM), domestic revenue rose 12.2% year-on-year, and international flights rose 12.0%, it said Thursday. press release.
PRASM rose 11.6% year-on-year in the premium class and 11.5% in the main cabin, Nocella said during the call.
“This is the second consecutive quarter in which we have seen PRASM hardware positivity for the main compartment after years of below-average industry-wide performance.”
Nocella said contract business revenues rose 27% year-on-year, with the technology, financial services and professional services sectors leading the way.
“The same positive business demand trends have continued into early July and we expect them to continue for the rest of the year,” Nocella said.
In general, the CEO of United Airlines Scott Kirby “Demand remains strong as we expect both TRASM in Q3 and Q4 to grow faster than 12% in Q2,” he said during the call.
