The head of United Airlines (UAL.O) expects a recovery in travel demand to continue despite a resurgence in COVID-19 spurred by the more contagious Delta variant but warned on Wednesday of vagaries until more people are vaccinated against the virus. Only around half of eligible Americans are fully vaccinated against Covid-19, fuelling a fresh vaccination push by US President Joe Biden.
Still, Kirby said both business and leisure demand had recovered faster than expected, with bookings “getting stronger and stronger every week”.
Shares in United rose 3.5% in midday trading, in line with US airline index gains. It expects business demand to improve by the end of the third quarter to be down about 40% to 45% versus the same period in 2019 before the pandemic as more businesses reopen.
A recovery in international travel, to which United is more exposed than rivals, hinges on the easing of border controls.
The US, for example, continues to bar entry to most non-US citizens who have been in Britain, the 26 Schengen nations in Europe without border controls, Ireland, China, India, South Africa, Iran and Brazil within the past 14 days.
United said it does not expect to restore its schedule to Europe before spring, 2022, and to Asia until at least 2023.
In other news – Tanzania curbs gatherings ahead of Covid-19 vaccine rollout
Tanzania’s government said it is gearing up to roll out vaccinations against Covid-19 soon, in a shift from the policies of the country’s former Covid-sceptic leader. Health Minister Dorothy Gwajima said late Thursday the government was also banning all “unnecessary gatherings” to prevent the spread of the coronavirus.
Tanzania’s late leader John Magufuli had downplayed the gravity of the pandemic and shunned masks for the healing power of prayer, even as neighbouring countries shut their borders and imposed curfews and lockdowns. Learn more
Source: IOL
