Deprived of their business class, airlines are rocking

It's gray for airlines -

No more business suitcases and three-piece suits on airport tarmacs, complaints of "jet-lag from my business trip", and "I'll call you back once in Tokyo, send me report A -32, thank you ”?

Business travel by air has fallen since the start of the coronavirus pandemic, leaving a big hole in the coffers of American airlines.

Their rebound will take time.

The pandemic has devastated airlines: the four largest companies in the sector in the United States (American, United, Delta and Southwest) still lost nearly 11 billion dollars cumulative in the third quarter.

Americans have started moving a little again for personal reasons: for the first time since mid-March, the number of customers passing through airport security last Sunday exceeded the 1 million mark.

Which is far from the 2.6 million recorded on the same day in 2019.

We had made an appointment in ten years

Many companies are re-authorizing travel, but are giving the green light in the dribbles.

The disaffection of business travelers is a problem for airlines: if they only represent about 30% of passengers, they bring half of their turnover, according to the federation representing the sector, Airlines for America.

This category "is extremely important to United, it was our livelihood," said Scott Kirby, the boss of the company, during a recent conference call.

Business theft is still down 85% to 90% at United.

Scott Kirby wants to be optimistic: "We are social creatures," he said, saying he expected a real rebound in business travel between the end of 2021 and 2022, and a return to normal in 2024. " After 9/11, everyone said the world was going to change, that nobody was going to steal anymore.

They were wrong, ”Southwest Airlines CEO Gary Kelly also recalled Thursday on CNBC.

But the return to normal "will not be soon," he said.

“Maybe in ten years.

"

Paradoxically, can telework be a boon?

Once the situation recovers, there could ultimately be a 10% to 20% reduction in the number of business trips, said Delta boss Ed Bastian, acknowledging the "impact" of new technologies. video.

But it will never be a “substitute” for business travel, he said.

As for teleworking as such, it could even benefit air travel, noted in another conference call the United sales manager, Andrew Nocella: employees who have chosen to settle away from the office will have to do so. return a few days a month.

“Business travel might be different, but we think it will come back.

In the meantime, their fall will continue to weigh on the accounts of airlines.

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