Long-haul flying demand is still at record highs. However, fares could creep up in the coming months as airlines face soaring costs.
United Airlines said Wednesday during an earnings call that it expects costs to start climbing in the coming quarter but that travel demand remains strong.
Scott Kirby, United’s CEO, said he was confident United could withstand a tough operating environment — partially caused by rising fuel costs and the war in Israel — thanks to its sprawling domestic and international networks, along with its range of cabin classes offering consumers more choices when it comes to traveling.
Even in a tough industry environment, we’re producing strong absolute results while producing the best relative results in our history,” Kirby said at the earnings call. “From basic economy, which allows us to compete profitably on price on the low end and all the way up to Polaris on long-haul international, United is able to give our customers the real choice they want.”
Consequently, United is doubling down on international travel following a summer that saw robust demand for it, which still continues to eclipse the appetite for domestic travel. In response to the high demand, United has added more routes to Asia and placed an order for 110 more long-haul jets.
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