After hitting a stiff economic head wind in 2009, business air travel appears to be reviving.
The heads of major airlines, including United, American and Delta, said they’re seeing the early indications of a resurgence as corporations get reacquainted with the idea of spending money on travel.
“We are seeing signs that business travelers, who cut way back in 2009, may be ready to take to the skies again,” American Airlines chief executive Gerard Arpey said this week as the company reported its quarterly earnings.
For most airlines, overall passenger demand has been down, but airlines have been particularly grieving the loss of business travel, which is the industry’s most lucrative sector.
So the return of “road warriors” — even if it is a tentative increase since the economy tanked in the fall of 2008 — is most welcome.
Delta and United officials report business bookings are up about 10 percent this month over January 2009.
“Business travelers are returning,” Delta CEO Ed Bastian declared Tuesday during a call to discuss the carrier’s fourth-quarter earnings.
For United, Denver’s largest airline, it means closing the gap on profitability, said United chief financial officer Kathryn Mikells.
The National Business Travel Association also sees “green shoots” beginning to spring up.
“With air-travel and car-rental costs expected to remain nearly flat and hotel rates expected to decline, businesses expect to travel more,” the NBTA said.
Travel volumes should grow this year, according to about 70 percent of travel managers surveyed late last year, said NBTA spokesman Caleb Tiller.
Survey respondents were managers at mid-size and large companies who oversee about $300 billion in business travel.
Two-thirds of them predicted total spending will rise, Tiller said, while the other third said they envision more trips for the same amount of dollars.
In downturns, low-cost airlines such as Southwest gain. “Bookings have risen, but they are not where we would like them to be,” said Southwest spokesman Chris Mainz.
Some companies such as Ball Corp. of Broomfield continue to keep a tight rein on travel. Spokesman Scott McCarty said travel isn’t restricted but an explanation is required when the lowest-possible fare isn’t booked.
“Companies are thoughtful about spending travel dollars,” said Andrea Shpall, president of Polk Majestic Travel Group in Denver. Some have asked for help in managing travel budgets.
To keep the momentum going, airlines will be pitching to corporate America, one expert predicted.
“As we go into February, March and April, you’re going to see a lot of juice out there to swing business travelers to a particular airline,” said Tom Parsons, CEO of .
Ann Schrader: 303-954-1967 or aschrader@denverpost.com
