American and other US airlines switch energy to leisure passengers
American Airlines is joining Southwest in experiencing some green shoots in demand, but overall, US airlines continue to face huge levels of unpredictability in their business until a reliable vaccine for COVID-19 can be approved and widely distributed.
A full recovery in business travel demand is highly dependent on the development of a vaccine, and as a result, the large US global network airlines are pivoting towards leisure travellers.
During a recent Cowen & Co investor conference, executives from American Airlines observed that there is still pent-up demand in travel, and the company had been experiencing some gradual improvement during the past few weeks. “...But it is fair to say that we’re still planning for a slow recovery”, American’s president Robert Isom said.
American is acknowledging that, for now, the customer base is changing, and the company is working to build a relationship with a broader base of leisure customers.
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