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If you’re looking for evidence that, psychologically at least, we’re mostly past the pandemic, look to the sky.
On Wednesday, United Airlines reported more than $12 billion in revenue last quarter. On Thursday, American Airlines reported its first quarterly profit since the outbreak.
The planes of those companies are packed with people looking for vacation travel. But an even more lucrative passenger is returning to the skies: the business traveler.
Justin Strelow generally enjoys traveling for business. Although not happy with every part.
“I don’t eat at the airport. I’m trying to drop a few pounds,” Strillo said. “I’m trying to reduce the severity of my illness.”
Strelow is the founder of Incisive, a Kansas City, Missouri-based company that makes software for hospital laboratories. Two weeks later, Strollo flies himself and three employees to Anaheim, California, for a trade show. Even without airport Cinnabons, the trip will cost the small business about $15,000.
“I’m still old school. I like meeting people face-to-face,” Strollo said. “We’ve had the benefit of being in front of people and really strengthening those relationships.”
This is music to the ears of the airline industry. Before the pandemic, business travel was more than 50% profitable, said Ryan Mann with the McKinsey consulting firm.
“Business travelers tend to book at the last minute, and that’s when prices are highest,” Mann said.
Business travel is about 70% of what it was in 2019, according to aviation data company Arc.
Mann said Zoom has replaced smaller in-person meetings that involve travel, “but conferences are filling the gap.”
On corporate retreats and team-building trips, remote workers can finally see how tall their colleagues are.
While business travel is on the rise, it’s an open question whether it will ever be fully recovered. A recession makes it even harder.
“This is an area where you can cut prices, and there’s clearly a proven option in amplification,” said Chris Wright, an analyst at investment research firm Third Bridge.
Plus, you don’t have to worry about your zoom being delayed due to lack of pilot.
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