The summer vacation season is winding down, and for airlines that means the return of business travelers is very important. travel vacation flights airlines us
FILE - People wait in a TSA line at the John F. Kennedy International Airport in New York, Tuesday, June 28, 2022. With summer vacations winding down, airlines are counting on the return of more business travelers to keep their pandemic recovery going into fall 2022. Air travel in the United States, bolstered by huge numbers of tourists, has nearly recovered to pre-pandemic levels.
Business travel, however, remains about 25% to 30% below 2019 levels, according to airlines and outfits that track sales.“The whole challenge for the industry is around the return of the corporate traveler, and whether he is going to come back in enough volume and frequency that is going to help these airlines,” says John Grant, an analyst with travel-data provider OAG.
“On the corporate side, it just takes a little more to restart that because there are so many moving parts,” Thackston said. “If you want to go visit clients in New York, it could be that nobody is in the office in New York. That is slowly building back.” Watterson said that among Southwest’s biggest corporate accounts, they all have employees traveling — but not as many of them, and not as often.
Vasu Raja, the chief commercial officer at American Airlines, said demand has dropped for one-day business trips in which someone leaves in the morning and flies home that evening. The cost of travel is expected to keep rising, putting pressure on corporate budgets. A recent report from travel-management company CWT predicted that fares paid by business travelers will rise nearly 50% this year and 8% next year, and hotel rates will rise 19% this year and 8% in 2023.
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