The buoyant growth in the US economy is allowing airlines in the country to look towards a ‘rosy future’ on the horizon, according to United Airline’s managing director for the UK and Ireland, Bob Schumaker.
Speaking at the Airport Operators Association’s annual conference in London, over four per cent growth in the US economy is, in part, allowing United to “do very well” and widen margins despite external variables such as oil prices.
A burgeoning global middle class is to ensure the healthiness of the airline industry in the future, Schumaker noted.
By 2020, “more than half the world be middle class” (defined as an individual with more than 20k in annual income). Due to the majority of airline passengers compromising individuals with dispensable income, this arguably means more passengers overall in the near future.
Schumaker remarked that United is diving “nose first into new routes”, even as it operates some which are not as profitable as others.
It is not necessarily the route itself that is not healthy for the airline, but rather the airline can not operate it how the customer wants. An exampled deployed by the managing director is one of its routes between the UK and Denver, Colorado in the US, as the airline could not fly it in the winter season, in which it will be more popular.
The AOA conference began today and ends tomorrow, October 30 2018.