The comments came one day after United reported a
The January-through-March period is a slow time for air travel even in normal years, but United said first-quarter revenue will be down 65% to 70% from a year ago. That prediction was five points worse than
United executives also declined to say when they expect to break even after losing
United CEO
“I know we have created a fair bit of angst among investors by not being willing to say that we think the inflection point on demand is right around the corner, 60 days away,” Kirby told analysts. “While our base case is that the turning point is coming a little bit later than maybe some others think, that turning point is coming, and it’s going to come at the same time for all airlines.”
Shares of
Rising rates of new virus cases, the slow pace of vaccinations, and the discovery of new variants of the virus have halted a recovery in air travel that started in May and lasted into the fall. Except for around
Kirby said travel won’t really recover until “a critical mass” of Americans get vaccinated and medical experts conclude that the shots will protect people from transmitting the virus. When those things happen, he said, “it could be a very rapid increase in demand.”
Cowen analyst
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David Koenig can be reached at www.twitter.com/airlinewriter
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