United Airlines CEO sees ‘ups and downs’ in travel so more people are vaccinated

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Written by Tracy Rosinsky and Sanjana Shivdas

CHICAGO (Reuters) – The president of United Airlines expects the recovery in travel demand to continue despite the resurgence of Covid-19 due to the more contagious type of delta, but warned on Wednesday of volatility until more people are vaccinated against the virus.

“There will be fluctuations between now and when enough of the world is being vaccinated that this really progresses into the background, which we’re looking forward to,” United CEO Scott Kirby said on a call with investors.

Chicago-based United Inc late Tuesday reported better-than-expected revenue for the three months to June due to a strong rebound in domestic travel and said it expects to return to profitability in the third quarter.

“We think the most likely outcome is that the recovery in demand continues largely unabated…because the evidence is overwhelming that a vaccinated person is highly protected from severe disease, hospitalization and death,” Kirby said.

Shares in United were up 3% at midday, in line with gains in the American Airlines Index.

Aside from the strength in domestic leisure travel in the United States, United said that business and international travel also rebounded faster than expected.

It expects business demand to improve by the end of the third quarter, declining by about 40% to 45% compared to the same period in 2019 before the pandemic as more businesses reopen.

(Reporting by Tracy Rosinsky in Chicago and Sanjana Shivdas in Bengaluru; Editing by William Maclean)

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