Airline executives predict a record summer, with even higher first-class demand

While the aviation industry industry was inside bright spot recently for a series safety issuesAirline executives say there are no signs of demand for flights slowing.

United Airlines “As an airline and as an industry” it will attract record numbers of travelers this summer, its Chief Commercial Officer Andrew Nocella said on Wednesday’s earnings call.

“Demand continues to be strong and we saw a record spring and summer travel season with 11 of the highest-grossing days on record, all in this calendar year,” Delta Airlines CEO Ed Bastian said on his website company call a week before. American Airlines And Southwest Airlines reported results on April 25.

Demand for air travel remains stable although persistent inflationary has weighed on household budgets, as well as a series of high-profile safety problems that have caused it congressional hearing and has been the butt of jokes from late-night television to TikTok.

Public scrutiny and regulation of the industry has increased over a period of time The door plug is blown of a Boeing 737 Max 9 in January. That caused a new safety crisis for Boeing and slowed deliveries of new planes to airlines.

United Airlines itself is under a safety review by the Federal Aviation Administration after several incidents this year, including a tire falling from one of its older Boeing 777s.

Airlines, which make most of their money in the spring and summer, are also struggling with higher fuel and labor costs, with new contracts giving pilots and other workers . big increase after years of stagnant wages.

However, a recovery in demand for international trips and corporate travel has helped boost global carriers. Both Delta and United’s second-quarter forecasts exceeded Wall Street estimates. Executives say customers appear willing to pay for first class and other cabins on standard coaches.

Nocella said on Wednesday’s earnings call that the airline may further segment the front of the plane, as United and others do. Airlines did with coach. “You have multiple groups of people working to find ways to innovate further and provide more and more choice and monetize that choice on our behalf going forward,” he said.

Meanwhile, Delta said premium revenue growth has outpaced standard passenger car revenue for many years.

Delta, United States and American announced Upgraded first class and business class cabins as well as more and larger lounges to accommodate the growing number of travelers willing to pay for higher-priced tickets or elite status or credit cards with high-fee rewards.

Delta is expected to open a new facility, more exclusive level airport lounges later this year.

Domestic-focused and low-cost airlines are expected to report results in the coming weeks. Some of these carriers have struggled in recent months because of higher capacity, limited aircraft availability and higher costs.