United Airlines' outlook 'may be too optimistic' -CIO

STORY: U.S. airlines on the back of strong financial results remain upbeat about travel demand, even as economists and analysts say the risk of an economic recession has gone up.

United Airlines and Delta Air Lines reported higher-than-expected quarterly earnings on resilient consumer demand, while American Airlines lifted its profit outlook.

Carriers are enjoying the strongest travel demand since the start of the COVID-19 pandemic, boosted by reopening of closed borders, a strong U.S. dollar and rising corporate travel.

While recession fears have sparked concerns about consumer spending, airline executives say travel demand is not likely to wane any time soon.

They also point to staffing and aircraft shortages across the industry, which are expected to persist and limit capacity growth, underpinning pricing power carriers currently enjoy.