An American Airlines passenger jet approaches to land at LAX during the outbreak of the coronavirus disease (COVID-19) in Los Angeles, California, April 7, 2021.
Mike Blake | Reuters
“This has been and we expect will continue to be a very choppy recovery,” Vasu Raja, American’s chief revenue officer, said during a Raymond James investor conference.
Raja said that July revenue came in ahead of the airline’s expectations but that the increase in Covid cases has led to weaker near-term bookings and higher cancellations. He added that end-of-year holiday bookings have been strong.
“Given the fluidity of the current demand environment we are not ready to make definitive adjustments to our capacity plans or guides at this point in time,” Raja said.
The Transportation Security Administration said it screened 1.47 million people at U.S. airports on Tuesday, the fewest since May 25. Travel demand often slides later in August as summer vacation season winds down.
Business travel generally picks up in the fall. Some companies are delaying a return to offices, however, raising questions about how quickly business travel will recover.
“We do anticipate that there will be a…slower recovery in business demand than what we’ve seen, but there will still be a recovery in business demand,” Raja said. He added that end-of-year holiday bookings have been strong.