The CEO of United Airlines supported Donald Trump’s pricing plan despite the uncertainty it causes the travel sector.
“We should all breathe,” said Scott Kirby during the Semaor World Economy Summit on Thursday. “It was just the first time in a chess game, and there are still a lot of movements to come.”
“I think it is easy to discuss tactics, but the president has a real desire to improve things for the Americans in the middle class, to create good careers,” he added.
Kirby suggested that Trump’s prices would create more jobs like those of United, where he said that employees could work in one place for 40 years and win six -digit wages after reaching seniority.
The Treasury Secretary, Scott Bessent, said the prices were part of a commercial strategy aimed at increasing the number of manufacturing jobs in the United States.
However, prices should also increase the inflation rate and reduce the purchasing power of the dollar, leaving consumers less money to spend.
Airlines face the uncertainty of travel demand
United Airlines told Business Insider that they had contacted the passenger and “apologized for any frustration she would have known”. Bruce Bennett via Getty Images
The stocks of airlines have been particularly volatile in the reaction to pricing announcements, because travel is one of the first things that people can reduce.
“We have gone through periods when people are unhappy before,” said Kirby.
He also said that customers do not seem to have abandoned summer travel plans, but he added that some people could indeed reduce the precaution.
Airlines warned of reducing travel demand and announced its intention to reduce flights in its first quarter income this month.
In its profits in the first quarter, United declared that the economy was “impossible to predict” and took the unusual measure to set up two profit forecasts for the year.
He kept his expectations in January for profit adjusted per share from $ 11.50 to $ 13.50, but said that it could reach $ 7 per share in the event of recession.
American Airlines withdrew its annual directives on Thursday due to economic uncertainty.
“We came out of a solid fourth quarter, we saw decent cases in January, and interior leisure trips fell considerably according to the period in February,” said the CEO of American Airlines, Robert Isom, in CNBC.
Delta Air Lines abandoned its intention to expand the capacity of 4%, CEO Ed Bastian warning that “growth has largely blocked”.
Kirby’s prospects for hope could inspire trust in investors that things are not too bad for airlines, especially since United is the largest in the world by the size of the fleet.
It is also Boeing’s greatest customer, who saw planes returned by Chinese airlines due to prices. The plan of the plant plan was supposed to deliver 50 jets to China this year, but is now looking to notice them in other countries.
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