American Airlines CEO Unconcerned by Potential U.S. Recession
Photo Credit: American has grounded 100 small jets because of the pilot shortage. Flickr / IMF Photo/Cory Hancock
Skift Take
American CEO Robert Isom is confident in a continued travel recovery even if the U.S. slips into a recession. That may defy economic logic but with red-hot demand going into the summer it's hard to see a significant drop in travel anytime soon.
The U.S. economic outlook has darkened in recent months after the economy unexpectedly contracted in the first quarter. That has raised some concerns about the continuity of the travel recovery, especially after the red hot summer airlines and others are forecasting.
But Robert Isom, CEO of American Airlines, is not losing sleep over a potential economic slowdown. The carrier improved its second quarter outlook on Friday, and maintains expectations of profits through the end of the year amid robust demand. It and other airlines are forecasting a busy summer with travelers paying as much as a third more for flights than they did last year.
"While there may be some concern about leveling off of growth rates, the airlines have not participated for the last 3 years in any of that growth," Isom said at an investor conference held by Bernstein Friday. "We’re now just now getting back as an industry to within 10 percent of 2019. When you ask are you concerned, absolu
