United Airlines' Report: Declining Travel Demand, Potential Alliance with Emirates, and Additional Hiring at SFO

United Airlines' Report: Declining Travel Demand, Potential Alliance with Emirates, and Additional Hiring at SFO

Airlines 2022-09-29 ParkingNearAirports.io
This month's absence of the usual post-summer travel downturn, according to United Airlines, is encouraging for the Bay Area's tourism industry.

September is starting extremely well, and it doesn't seem like summer is over yet. Patrick Quayle, senior vice president of global network planning and alliances at United (Nasdaq: UAL), told conference organizers at the annual Cowen Global Transportation & Sustainable Mobility Conference on Wednesday the following:

"It's that strong. The demand for travel to Mexico, the Caribbean, and Europe is still as high as it was throughout the summer. Vacations and kids being off school boost summer travel."

"The drop-off that has often occurred between August and September is not happening this year," Quayle continued. "Both the luxury cabin and the premium-leisure cabin, such as premium economy, are seeing extremely high demand. The demand for luxury leisure eventually fuels this strength."

With roomier seats and other facilities than standard economy class, premium economy service has grown in popularity. Beginning on February 15th, Emirates intends to introduce its Premium Economy service on nonstop flights between SFO and Dubai.

The Asia-Pacific region is also showing promising signals, according to United, which is great news for San Francisco International Airport, one of United's entry points into that section of the world. Since the outbreak of the epidemic, travel to Asia has been slower.

Source – Shutterstock. A man stands by the window at the airport and watches the plane before departure

"Almost a tale of two Asias exists. Then there is everything else, from Korea to Singapore via the South Pacific, which is a bit more metered and careful," Quayle said. "We're pleased with the margins. Actually, our strongest entity is Asia-Pacific."

In order to fill 165 vacancies located at SFO, the carrier said on Wednesday that it would host its second career fair in the region on September 9th. The airline announced that it would conduct on-the-spot interviews and make job offers for positions on its ramp, customer service, technical operations, and corporate support teams. This year alone, the major carrier at SFO has hired 875 people in the Bay Area.

Recently, United started rumors that it might announce a codeshare agreement with Emirates at a press conference on September 14th that would feature Emirates President Sir Tim Clark and United CEO Scott Kirby.

At the Wednesday investment conference hosted by Cowen, United executives tended to keep quiet.

Quayle praised Emirates and its management team, saying the following:

"They serve a variety of unusual destinations from Dubai. We put out an invitation for an event on September the 14th in D.C., so I don't want to get in front of my skis and make any statements as to what that is today."

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Source – Shutterstock. Check-in area – United Airlines logo

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Source – Shutterstock. United Airlines Boeing 737 takes off from Los Angeles Airport

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