Prepare for landing — Sky high international travel demand to normalize
You can't fly to Ithaca when you're in Italy
US network airlineshave benefited from booming demand for international travel this summer. Revenues for US to Europe routes are 45% higher than pre-pandemic, helped by pent up demand and a lifting of all restrictions. Domestic beach and mountain destinations were great options in 2021 but have lost share as people set their sights abroad. But Andrew Didorabelieveswe should see some normalization this Fall as people who had traveled internationally return to domestic routes. International profitability is well above pre-pandemic levels but that may not last. Cruise lines have lagged the recovery pace of airlines andthings only returned to normal this year, so there's likely more of a recovery ahead. Plus, relative to airlines, cruise lines do tend to have more bookings visibility and less exposure to volatile fuel prices.
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