Returning passengers allows airlines like American Airlines and United Airlines to pass on higher fuel prices to ticket prices The airlines say they have reached a new stage in their recovery from the Covid-19 pandemic and anticipate record turnover for the next quarter as well as a return to profits.
American Airlines announced this week that they had hit an all-time high in March. This is the first-time sales have been this high since 2019. Executives said that with these high sales, it will allow them to increase the prices to compensate for the increasingly high fuel costs, without compromising demand.
Airline executives say this momentum should continue, allowing them to raise fares to offset soaring fuel costs, without undermining demand. “In March we saw what was possible”, when the drop in infections and the relaxation of restrictions led to a strong return in demand, explained Robert Isom, CEO of American Airlines during a conference call.
United Airlines also reported this week that the industry has reached an inflection point and expects record revenue for the current quarter as well as a profitable year. The company claims to have succeeded in passing on all the fuel price increases to its customers.