Scott Kirby, the CEO of United Airlines, stated at an aviation conference in Istanbul that the United States is currently experiencing a “business recession,” while the consumer sector remains strong. Kirby highlighted that leisure air travel is rebounding more robustly and rapidly compared to business travel. He made these remarks during the annual meeting of the International Air Transport Association (IATA).
Kirby noted that leisure demand is exceptionally strong, especially premium leisure demand. However, business travel has not fully recovered and continues to face challenges. He described the current economic situation in the U.S. as either a mild recession or a moderate economy, with the consumer sector remaining resilient and showing strength.
In the first quarter, U.S. economic growth slowed more than expected due to businesses liquidating inventories in anticipation of weaker demand later in the year, partly driven by higher borrowing costs. However, global airlines anticipate a significant increase in profits for 2023 as travel demand continues to rebound, albeit with challenges such as supply chain disruptions and talent shortages.
Kirby emphasized that airlines cannot operate in the same manner as they did before the pandemic. While supply chains are improving, he stated that the expectations and standards for airlines worldwide are being raised as they strive for growth in the industry.
