United Airlines preparing for ‘mild’ economic recession next year -CEO
By David Shepardson and Rajesh Kumar Singh
NORTH CHARLESTON, S.C./CHICAGO (Reuters) – United Airlines Inc Chief Executive Scott Kirby on Tuesday said his company is preparing for a “mild” economic recession next year.
Kirby, however, added that the Chicago-based carrier has not yet seen any signs of a recession in its data.
“If I didn’t read the Wall Street Journal or watch CNBC, the word recession wouldn’t be in my vocabulary right now,” Kirby said on the sidelines of an event.
“For what it’s worth, we are planning for a mild recession next year,” he said.
A worsening economic outlook coupled with high inflation has sparked concerns about consumer demand, hurting airline shares.
The NYSE Arca Airline index fell 3.4% on Tuesday as JetBlue and Spirit Airlines trimmed estimates for revenue per available seat mile in the current quarter.
JetBlue also said travel demand for December is shaping up to be below its expectations. The New…
