U.S. Airlines Warn of Weakening Demand Ahead of Holiday Travel

The holiday travel rebound U.S. airlines were anticipating is starting to wobble.

Surging coronavirus cases have caused a “weakening” in bookings, American Airlines Group Inc. President Robert Isom said Thursday at a Skift conference. Earlier in the day, United Airlines Holdings Inc. followed Southwest Airlines Co. in warning that more customers are scrapping their trips.

“There has been a deceleration in system bookings and an uptick in cancellations as a result of the recent spike in Covid-19 cases,’ United said in a regulatory filing.

The slowdown threatens airlines’ push for a modest holiday sales boost at the end of a year in which air travel collapsed because of the coronavirus pandemic. Only two weeks ago, United was adding flights for the week of Thanksgiving, saying it expected its busiest week since March. Now, government leaders are discouraging travel, with the U.S. Centers for Disease Control being the latest to urge Americans to stay home.