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Doha, Qatar – United Airlines does not intend to hand over the new leadership to the US-European market, although the carrier will return many settlers to Asia, said chief executive Andrew Nosela in an exclusive interview.
“At this point we are the biggest in the Atlantic Ocean, and I think this is a permanent change,” Nosela said at the IATA General Assembly in late June.
The United States plans to fly about 3.7 million seats between the United States and Europe this June, July and August. By comparison, in the summer of 2019, Delta United flew more than 600,000 seats to Europe, and the United States flew 19,000 more.
According to Nosela, the United States does not see change as a tactic as it seeks to increase demand in Asia, where the United States has been a market leader. Rather, it is a long-term strategic move.
United States He said the decision not to release Widbode in 2020 was due to the long-running game of the American and Delta retirement. As a result, even though the United States is building more than 13% of its seats in Europe in the summer of 2019, the carrier still has 20 large plots of land that can be deployed in places such as Japan, China and Hong Kong. Desire to return after travel restrictions in those countries are reduced.
“We’re swinging for a fence, and I think we’re in for a run.” – Andrew Nosela decides to put more seats in the Atlantic than the United States and Delta.
“As the industry shifts to the right, we are ready to respond and turn left,” Nosela said, referring to a large number of retirees. “And we were really sure that after two years of travel, that demand would be lifted and that this would be a great opportunity for someone to fly in the Atlantic, and we used it.
The United States has added a variety of routes to Europe this summer, including entertainment destinations such as the Canary Islands, Mallorca and Azores, which are not well-known in the US market.
According to Nosela, all of the service providers are working well on new roads, and he predicts that they will be re-scheduled next year with some new ones.
Less regional lines in the US
The Chief Commercial Officer presented insights on the United Home Network, which is less than 1,000 daily in 2018 and 2019.
Nosela explained that most of the offers were for regional work. The service provider had planned to reduce regional operations in the United States’ long-distance fleet, but the ongoing shortage of pilots has forced it to slow down.
United’s main line network has not been affected by the shortage of pilots, says Nosela, and compared to 2019, the emphasis is on recreational routes, similar to the pre-epidemic pattern.
Nosela added that food cuts from regional express markets in the United Express are not affecting mainstream operations.
“From the financial point of view, we have been successfully working our way around this, but we know this is difficult for the communities we have served with regular flights and limited seats, and now we are. I can no longer do that,” he said.
Demand for air travel is still strong.
In terms of demand, there are some early signs that high tariffs and inflation in the market are starting to reduce the demand for passengers.
For example, Hopper reported that domestic domestic ticket prices fell for the first time this year from mid-May to mid-June. Recent ARC data shows that agency channel ticket sales have been down for more than a year and three years last month. Entertainment agencies In the week ending July 3, they bought 1.2% more tickets in 2019, and more than 6.2% in 2019, the week ending June 5.
But Nosela says United’s interest is still strong.
“We are expecting a very strong July and August, and we are not reporting any debris on the road,” he said.
He noted that inflation rates were “extremely high” but added that inflation was “very similar” to 2014.
“We are very good because the tariff is high, but it is high enough to cover the price of oil that everyone has seen and it is not reducing demand at this time,” Nosela said.
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