Lagging corporate recovery in US attributed to ongoing 'business recession'

29 June, 2023

The third edition of Deloitte’s corporate travel study, released in Apr-2023, indicated that business travel would continue to climb in the United States and Europe, but likely faced a limited upside with travel managers facing high prices, tough supplier negotiations, and sustainability mandates as trip volume increases.

Speaking to CAPA TV on the sidelines of the recent IATA AGM, United Airlines CEO Scott Kirby, reported corporate travel demand at the airline remains 20% to 25% lower than previously forecast.

Mr Kirby attributed the lagging corporate recovery to an ongoing "business recession" due to worldwide economic pressures, however strong consumer demand is "more than making up for the lack of business travel".

The CEO stated premium revenue per available seat mile (RASM) is similar to pre-pandemic levels as the carrier continues to sell "far more premium leisure seats than we ever did before".