Traditional corporate travel demand hasn’t returned but vacation travel is holding up despite higher fares
Executives from major U.S. airlines on Tuesday said they were optimistic about travel demand for the rest of the year, shaking off worries about creeping operating costs and fears of ebbing demand.
Travel appetite surged last year and airlines began to make money again after losing billions of dollars during the Covid-19 pandemic. Carriers’ shares have also climbed this year, but airlines have been dogged by worries that demand will falter amid higher fares, and that rising costs of fuel and labor would dent profits.
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