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US aviation: recession threat could undermine US corporate growth

The three large US global network airlines continue to hold bullish views on corporate demand, even as forecasters are indicating a recession could occur in 2020.

Their views are fuelled by corporate revenue growth outpacing topline revenue increases, and American, Delta and United believe that business revenue strength will continue into early 2019, despite lingering uncertainty created by trade disputes between the US and China.

Some of the growth in corporate revenues is driven, in part, by increasing commissions to travel management companies; commissions started to rise in 2017, and some airlines seem willing to pay higher rates in order to hold or grow their corporate shares.

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