United says domestic leisure fares are topping 2019 levels

A United Airlines Holdings Inc. employee assists a traveler at a Hawaii ticket booth at San Francisco International Airport (SFO) in San Francisco, California, United States on Thursday, October 15, 2020.

David Paul Morris | Bloomberg | Getty Images

Summer vacations are getting more expensive as travelers return from the long pandemic break.

United Airlines said Tuesday that returns on domestic leisure tickets purchased this month exceeded 2019 levels and said the trend will continue into the summer, reflecting similar comments from Southwest Airlines last week.

United said total revenue per available seat mile, a measure of how much revenue airlines bring in relative to their capacity, would decrease 12% in the second quarter from previous projections of about a 20% decline. Weak demand for business travel weighs on returns overall, despite being close to 2019 levels, United said.

United expects positive adjusted earnings before interest, taxes, depreciation and amortization for the third quarter and lower losses for the second quarter.

U.S. airport screenings are back to pre-pandemic levels but are still low for this time of year. On Monday, the Transportation Security Administration announced it had screened 1.86 million people, compared to 2.1 million on the same day in 2019 and just 267,451 last year.

United shares rose about 2% in morning trading.

Comments are closed.