A United Airlines plane takes off from Ronald Reagan Washington National Airport in Arlington, Virginia, on November 23, 2021.
Drew Angerer | Getty Images
United Airlines says travel demand has been resilient currently — except from the U.S. government.
Government travel “has fallen off here post-inauguration,” United’s Chief Financial Officer Mike Leskinen said at a Barclays industry conference on Wednesday, referring to the beginning of President Donald Trump’s term last month.
Trump and his advisor, billionaire Elon Musk, have vowed to chop costs in the federal government, and 1000’s of presidency employees have either been laid off or offered buyouts. Jobless claims have surged in Washington, D.C.
The federal government travel segment is about 2% of United’s revenue, a United spokeswoman said. The airline brought in nearly $52 billion in passenger revenue last 12 months. Leskinen said other demand helps to make up for the shortfall.
Strong international leisure travel demand continues to outshine domestic demand, Leskinen added.
