(Reuters) – United Airlines expects profit margins from its international business to recover faster and stronger than those from domestic flights once borders reopen, policy they are actively lobbying to follow the new U.S. government, officials said Thursday.
United, based in Chicago, said it expects international demand to exceed supply in a distributed industry that has led some airlines to go out of business and others to much of it. the jets traditionally used extensively for international flights.
And United, which posted a deep quarterly loss on Wednesday, have the potential to fit that bid, Chief Commercial Officer Andrew Nocella said on a quarterly conference call.
“I add to those facts. Simply put, there are fewer wide body planes in the fleets around the world. In particular, there are fewer of the big ones with the big business class huts, ”said Nocella.
He said United, which has been updating their business class product, has been counting the number of Boeing 747s and Airbus A380s that used to fly to the United States and no longer exist. the fleets of global airlines and also mentioning one competitor to pull out of the overseas market.
Last week, Norwegian Air said it will seek government assistance and end flights across the Atlantic that challenged established competitors less than a decade ago. .
U.S. airlines have received $ 40 billion in federal payment support, much of it in the form of non-repayable grants, under two separate COVID-19 relief packages, and $ 25 billion separately low interest loans.
On his first full day in the White House, U.S. President Joe Biden moved swiftly to fight the COVID-19 pandemic with recommendations focusing on booster vaccines and booster testing, two things companies- air says it will be important to resume international travel hit by border closures.
Reporting with Tracy Rucinski in Chicago; Further statement by Sanjana Shivdas in Bengaluru; Edited by Nick Zieminski