US Airways CEO: We Are Seeing Small Uptick In Leisure Bookings
June 16 2009 - 2:46PM
Dow Jones News
US Airways Group Inc. (LCC) Chief Executive Doug Parker is
keeping a close eye on what may be the first sign of a recovery in
the airline industry.
"We have seen a small uptick in leisure bookings over the past
couple months," Parker said on the sidelines of the National Summit
in Detroit on Tuesday. "We don't know what it means yet but there
is something going on there."
Parker declined to disclose a percentage change but added that
the increase is material.
The U.S. industrial sectors have been searching for any early
signals that consumers are shaking off the economic recession and
returning to their normal shopping habits. Earlier this month,
General Motors Corp. (GMGMQ) executives called a bottom to dropping
sales. Other companies, however, said it may still be too early for
a rebound.
Parker said his company is taking all the steps it can to
control costs. About 400 flight attendants were put on furlough
last week.
The company sent notices asking for 300 volunteers from Phoenix
and Las Vegas and another 100 from the East Coast. The volunteers
from Phoenix and Las Vegas are being asked to take off 16 months.
The remaining attendants will be asked to take off August through
November.
The airline industry, meanwhile, has reduced the amount of
available seats by 10% this year compared to 2008. Another seat
reduction may occur if the economy doesn't improve. Parker is also
still waiting for the more lucrative business travelers to return
to the skies.
-By Jeff Bennett, Dow Jones Newswires;
jeff.bennett@dowjones.com; 248-204-5542