Book your tickets to profits

Feel like jetting off to Ljubljana, Slovenia? Well now you can thanks to United Airlines, which just added 10 new international cities to its travel schedule, including Okinawa, Ibiza, and Marseille.

United already has more international flights than any other domestic airline, and this new batch of destinations is its largest international expansion ever. But American Airlines refused to be left behind, and today revealed seven new international routes of its own, with destinations like Vienna and Reykjavik.

Everybody’s flying high

Despite the rising cost of living thanks to higher inflation (not to mention the rising cost of airline tickets thanks to higher oil prices), demand for air travel remains strong. So strong, in fact, that airlines are looking further afield for new destinations as travellers seek adventures off the beaten path.

Customers also want more bang for their buck, and have begun booking big trips abroad outside of the expensive summer travel season. United CEO Scott Kirby told CNBC that October has become the airline’s best month of the year, while American plans to keep the new Vienna route open through January to encourage more Christmas travellers.

More miles, more money

And of course, business is booming for international travel. American Airlines reported record quarterly revenue of $16.7 billion in Q2, up more than 16% year-over-year. Its international business was a key contributor: Revenue per passenger for the airline’s Atlantic business segment rose 8.9% year-over-year, sales jumped 15.1% for its Pacific business, and revenue for its Latin America segment gained 6.6%.

As for United, it beat Wall Street forecasts last quarter thanks in no small part to its international revenue, which popped 11% in Q2. Global travel now accounts for about 41% of the company’s total revenue.

Both companies are betting that demand for international travel remains sky-high, and both are set to continue reaping the rewards.—MR