United Airlines CEO Glenn Tilton believes the unravelling global financial crisis makes the steps it and other US carriers have taken in cutting capacity even more timely.
The Star Alliance carrier this summer announced plans to cut around 100 of its mainline aircraft - representing around a quarter of its fleet - as part of a major scaling back from this winter. Other US mainline carriers are similarly cutting capacity
Speaking during a Star Alliance press event in Sao Paulo, marking Brazilian carrier TAM's move to join the alliance, Tilton said: "The [US] airlines have moved to reduce capacity in anticipation of a softening market, which has not really revealed itself to us, and also the oil price. There has been a discipline in the US market.
"The adjustment is timely. The financial crisis now makes the adjustments look even more necessary," he says.
Tilton says the demand profile for next year is just beginning to "reveal itself", but believes United may be better insulated from the financial crisis than some others as key businesses at its Chicago home base are industrial rather than financial firms.
"Our corporate clients are a little different. McDonalds is obviously a very different corporate client than banks. They continue to pursue their growth off shore. That's really where all our corporate clients are growing.
"I do think corporate travel departments are going to begin to pursue travel efficiencies and are going to be disciplined in the way they purchase their travel.
"So we'll see that and we'll watch cargo very carefully for indications of a softening."
But he does not expect any major US mainline casualties next year. "Companies have been very focused on their balance sheet, their costs, their capital spending ... they have been very prudent looking into 2009," he says.
Source: Air Transport Intelligence news
