High fuel prices test limits of summer vacation spending
High fuel prices are impacting leisure travel intentions in the U.S., which have slightly decreased compared to last year. Despite this, airline executives remain optimistic about the upcoming summer travel season, anticipating a boost from major events. United Airlines and American Airlines are both expecting to carry more travelers this summer than in previous years.
- ▪Leisure travel intentions in the U.S. dropped to 82.8% in March, down from 83.1% a year earlier.
- ▪Airline executives are optimistic about the summer travel season despite higher fuel prices.
- ▪United Airlines expects to carry 53 million travelers this summer, an increase of 3 million from last year.
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Leisure travel intentions in the U.S. were slightly lower in March — at 82.8% compared with 83.1% the same month a year earlier — though they are still relatively high, UBS said in a note Monday."We believe the year-over-year moderation in travel intentions this year was likely due to higher jet fuel and other geopolitical concerns," UBS airline analyst Atul Maheswari wrote. He added that the intent to travel is near the highest points in the past nine years.So far, airline executives said, customers are still booking, and executives are optimistic about the summer travel season.
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