United Airlines shares jump on optimistic outlook on demand despite the delta variant

A United Airlines Boeing 737-800 and a United Airlines Airbus A320 on visa approach to San Francisco International Airport, San Francisco.

Louis Ribbon | Reuters

Actions of United Airlines were up almost 4% on On Wednesday morning the carrier predicted the rebound in travel demand will continue in the next few months.

United reported their sixth consecutive quarterly loss after market Closed on Tuesday. But the airline’s losses are getting smaller and the carrier said bookings have continued to improve, too for hard-hit segments like business travel e international long-haul travel.

United chief executive Scott Kirby told CNBC’s “Squawk Box” on Wednesday that the fast-Variant diffusion delta of Covid-19 did not affect bookings, echoing similar comments from Delta Air Lines CEO last week.

Kirby said the United States should revoke an entry ban on most non-US citizens arriving from the UK and the European Union, restrictions that have been in place from March 2020.

“We will not prevent the delta variant from arriving in the United States by closing those borders because it is already here, “Kirby said.

United, and other airlines and travel companies have repeatedly lobbied the Biden administration to lift restrictions, but the peak travel season passed without any change from the United States. However, several Europeans countries like Greece, Spain and Italy have reopened their borders to visitors, including from the United States.

Kirby said there is a “human element” in the ban. “There are families who we didn’t see each other in 18 months, “he said.

A White House spokesperson told CNBC that government officials from the US, UK, EU, Mexico and Canada continue to meet on how to reopen the trips but did not say if the authorities are close to a decision.

On Monday, the State Department and Centers for Disease control and prevention have issued their warnings on trip to the UK in highest level, telling citizens to avoid travel there.

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