Today’s podcast discusses Airbnb’s earnings, American Airlines’ loyalty plans, and United’s international optimism.
Good morning from Skift. It’s Thursday, November 2. Here’s what you need to know about the business of travel today.
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Airbnb had a strong third quarter, recording its highest ever quarterly profits and setting a company record for revenue, writes Travel Technology Reporter Justin Dawes.
The company reported net income of $1.6 billion, excluding a one-time income tax benefit. It also generated $3.4 billion worth of revenue, an 18% jump from last year. Dawes reports those record numbers were driven by 113 million bookings during the third quarter, a 14% year-over-year increase.
In addition, Airbnb said it saw a 19% jump in its active listings last quarter, with Latin America and Asia-Pacific representing the regions with the highest growth.
Next, American Airlines is looking to boost profitability as it flies to more underserved U.S. cities and enhances its loyalty program, writes Travel Experiences Reporter Selene Brophy.
American CEO Robert Isom said at the Skift Aviation Forum on Wednesday the carrier would increase service to smaller U.S. cities., citing Roanoke, Virginia and Lubbock, Texas as examples. Isom added that American was looking to strengthen its loyalty program, which lags behind competitors. He called it an “untapped opportunity.”
Finally, United Airlines strongly believes that the international travel boom hasn’t peaked, reports Edward Russell, editor of Skift publication Airline Weekly.
United Chief Commercial Officer Andrew Nocella said at the Forum on Wednesday that the company sees more opportunity for growth overseas. United recently ordered hundreds of new Boeing 787s and unveiled several transatlantic routes for next summer. Russell writes United saw record profits for both transatlantic and transpacific travel in the third quarter.
However, Russell notes many airline industry insiders wonder if the international boom will continue. In addition, long-haul international routes cost more to operate than domestic flights, possibly leading to large losses.
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