United Airlines Holdings Inc. Scott Kirby, CEO, tried to reassure Wall Street on Wednesday that the delta option is worrying, but is unlikely to hurt the resumption of air travel.
At the end of the tunnel there is not only light, but also “we are leaving the tunnel”, United
said the top manager. “I would say that demand is recovering even faster than we expected domestically, both leisure and business demand.
Kirby admitted it was a delta, expected to be the predominant variant of SARS-CoV-2 in the coming months, has been the most talked about topic among airline investors lately.
“Based on all this, we think the most likely outcome is that the continued recovery in demand will continue largely unabated,” he told Wall Street analysts in a conference call early Wednesday to discuss United’s second-quarter results.
United announced a narrower – than – expected quarterly loss on Tuesday night and said it was likely to be profitable in the third quarter on a budget and other basis.
Delta Air Lines Inc.
last week surprised investors with adjusted quarterly profits, which the company approved for ramping for business and international travel.
“This is the most likely and logical result, as there is overwhelming evidence that a vaccinated person is highly protected from serious illness, hospitalization and death,” Kirby said. “There is still a risk of serious illness and death without COVID-19.”
While many international destinations remain subject to banned or restricted restrictions for U.S. passengers, Kirby means that United’s decision not to retire wide-body jets “means that we are prepared to meet demand for long-distance international travel.”
Kirby also welcomed the airline’s decision to renew its fleet and retire most of its small regional jets. narrow-body jet airplanes capable of both domestic and shorter international flights.
American stocks have so far risen 11% this year, compared to a 16% rise in the S&P 500 index.
USA Global Jets ETF
has increased by 4% over the same period.