The price of airline tickets will drop as the effects of the COVID-19 pandemic continue to pressure the industry.

That's what American United Airlines CEO Scott Kirby believes, who spoke to the CNBC television channel on Wednesday.

”My guess is that prices will be lower in the short term,” he said.

United made a loss of $1.6 billion in the second quarter and is now aiming to cut its daily costs by more than a third, from $40 million per day in the second quarter to $25 million in the third quarter.

Scott Kirby further said that demand for air travel appears to have bottomed out after a period of decline, but that revenues could reach a plateau of 50 percent of 2019 levels as long as there is no widely available vaccine against Covid-19.

Source: Nyhetsbyrån Direkt