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  • Business travel boosting airline revenue

    2010-06-16

    The airline industry is bouncing back on the strength of a strong return in corporate travel sectors, according to top airline officials.

    US Airways alone saw business travel rise more than 50 percent from its 2009 lows. Delta and United reported increases of between 20 and 30 percent, according to Reuters.

    "As we've entered the recovery period, I think the recovery was greater than we were able to predict six months ago," United Airlines CFO Kathryn Mikells told the news source.

    The industry struggled as the poor economy significantly hurt both business and leisure travel. Most airlines cut capacity and jobs to stay afloat. Although recent signs have shown that the industry is recovering, executives are remaining cautiously optimistic, with many saying they won't expand until the industry is back to pre-recession levels.

    Airlines predicted increased growth in the second quarter across the board. Delta president Edward Bastian told a Bank of America-Merrill Lynch investor conference that they "continue to see momentum building in the business."

    Shares of the airlines rose several points after the news broke.
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