September 15 - American Airlines is joining Southwest in experiencing some green shoots in demand, but overall, US airlines continue to face huge levels of unpredictability in their business until a reliable vaccine for COVID-19 can be approved and widely distributed.

 

A full recovery in business travel demand is highly dependent on the development of a vaccine, and as a result, the large US global network airlines are pivoting towards leisure travellers.

 

During a recent Cowen & Co investor conference, executives from American Airlines observed that there is still pent-up demand in travel, and the company had been experiencing some gradual improvement during the past few weeks. “…But it is fair to say that we’re still planning for a slow recovery”, American’s president Robert Isom said.

 

American is acknowledging that, for now, the customer base is changing, and the company is working to build a relationship with a broader base of leisure customers.

 

 

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