Yahoo Finance United is offering more flights to warm-weather destinations
United Airlines (UAL) expects the sizzling summer surge in leisure travel to stay hot this winter and is adding 150 new flights to warm-weather cities.
"We've seen a significant uptick in our passenger demand and our customer demand," Ankit Gupta, United's vice president of network planning and scheduling, told Yahoo Finance Live.
The airline is increasing flights from November through March 2022 to Florida, California, Arizona, Georgia and Nevada. It's also adding service to destinations in Mexico, Central America and the Caribbean, betting pandemic weary Americans will continue their post COVID-19 lockdown vacations.
"And with the vaccines taking effect and customer confidence increasing, we're seeing our customers starting to pick up these flights right now for the winter season," Gupta said.
United will report second quarter earnings after the markets close on July 20. Cowen senior research analyst Helane Becker said leisure travel demand is as good as it gets right now for the airlines.
"We know that domestic leisure is very strong, and that we're back to pre-pandemic levels," she said.
According to Gupta, United typically adds flights now for the winter season. "And versus pre-pandemic we are 20% higher than what you're seeing we would be loading today," he said, but he added that United is flying at 80% of its pre-pandemic levels because international and business travel remain depressed.
'Planning for the resurgence'
United Airlines CEO Scott Kirby recently outlined the carrier's ambitious "United Next" program which includes the purchase of 270 new aircraft, updating cabin interiors on its existing fleet of jets and hiring 10,000 pilots by 2030.
"We started planning for the resurgence of the recovery, which you're seeing right now, about 12 months ago," Gupta said.
Tickets for the additional winter flights to warm-weather destinations went on sale on July 9. Buying now can save you money. For instance, a roundtrip nonstop flight on United from Newark to Ft. Myers, at the end of July, costs $347. After United added the new nonstop flights, the same ticket for a flight, in November, purchased now, costs about $227. A roundtrip flight from Denver to Ft. Lauderdale, at the end of July, costs $437, but the same flight in November costs $277.
However, some destinations to which United has added flights will cost more. For instance, a roundtrip flight from Chicago to Key West, at the end of July, costs $430, but the lowest fare for a trip in November, if you purchase it now, is $450.
"We expect this travel surge to continue through the winter, mostly because some of the international borders also remain closed," Gupta pointed out.
Demand for flights to some locations like Tampa and Orlando is running 120% greater than in 2019, according to Gupta. "It's just the shift of some of the international demographics on the leisure side, shifting towards the U.S. domestic leisure side," he said. Gupta attributes this change to the successful COVID-19 vaccination drive in the U.S.
Adam Shapiro is co-anchor of Yahoo Finance Live 3pm to 5pm. Follow him on Twitter @Ajshaps
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