"Travel demand has soared back in the second half of the year, and that's good news for the economy at large, too, according to United Airlines' CEO. Scott Kirby told CNBC's "Squawk Box" on Tuesday that demand significantly improved at the beginning of July. "It was like a light switch coming on," he added. The summer travel period is key for airlines, while Labor Day and Thanksgiving are also significant revenue drivers."
""On the demand side, I think we're a really good real-time indicator of what's going on in the economy," Kirby told CNBC. "I actually think the economy is stronger than some of the backward-looking statistics would suggest," he added. Such statistics might include jobs and inflation data, which are published monthly. Inflation reached 2.9% last month, its highest level since January."
Travel demand surged in early July and continued strengthening into September, producing stronger bookings for summer, Labor Day, and Thanksgiving travel. Demand had weakened in April after tariff announcements raised economic uncertainty and prompted airlines to temper profit forecasts. The airline industry functions as a real-time bellwether because travel spending is discretionary and companies cut trips when the economy weakens. Current booking trends suggest overall economic activity may be stronger than some backward-looking monthly statistics indicate. Demand increases have occurred across both corporate and leisure travel. Inflation reached 2.9% last month, its highest level since January. The airline business still faces operational and market challenges.
Read at Business Insider
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