Travelers at LaGuardia Airport in New York on June 30, 2022.
Leslie Josephs | CNBC
Although the airline industry has been in the spotlight lately for a host of safety issues, airline executives say there are no signs of declining demand for flights.
United Airlines “As an airline and as an industry” it will carry record numbers of travelers this summer, the airline's Chief Commercial Officer Andrew Nocella said on an earnings call on Wednesday.
“Demand remains strong and we are seeing a record spring and summer travel season with our 11 highest sales days in our history this calendar year,” Delta Air Lines CEO Ed Bastian said during a call with his company a week earlier. US airlines And Southwest Airlines report results on April 25.
Demand for air travel has remained resilient despite persistent inflation that has weighed on household budgets, and despite a spate of high-profile safety issues that have sparked congressional hearings and become the butt of jokes from late-night television to TikTok.
Public and regulatory scrutiny of the sector increased after a door plug blew out of a door Boeing 737 Max 9 in January. That led to a new safety crisis for Boeing and delayed deliveries of new planes to airlines.
United Airlines itself is undergoing a safety investigation by the Federal Aviation Administration after several incidents this year, including a tire falling off one of its older Boeing 777s.
Airlines, which make most of their money in the spring and summer, are also struggling with higher fuel and labor costs, with new contracts giving pilots and other workers big raises after years of stagnant wages.
Nevertheless, demand for international travel and an uptick in business travel have boosted global airlines. Both Delta and United's second-quarter expectations exceeded Wall Street estimates. Customers appear willing to pay for first class and other cabins above standard coach, executives said.
Nocella said during the earnings call Wednesday that the airline could further segment the front of the plane, just as United and other airlines have done with the coach. “You've got a lot of teams of people working on how we can further innovate and provide more and more choice and monetize that choice on our behalf in the future,” he said.
Delta, meanwhile, has said that premium sales growth has outpaced standard coach sales for years.
Delta, United and American have announced upgraded first and business class cabins, as well as more and larger lounges to accommodate the growing number of travelers willing to pay for more expensive tickets or elite status or high-rewards credit cards.
Delta will open a new, more exclusive airport lounge later this year.
Domestically focused and low-cost airlines are expected to report results in the coming weeks. Some of these airlines have struggled in recent months due to higher capacity, limited aircraft availability and higher costs.