Since President Trump’s inauguration, government employee travel has experienced a decline, representing 2% of United Airlines' business, according to CEO Mike Leskinen. The company reported nearly $52 billion in passenger revenue for 2024, indicating that any drop in government travel could result in millions of dollars in losses. Federal employee travel is affected by layoffs and buyouts initiated by the Department of Government Efficiency, aimed at reducing spending. This reduction in government travel demand is a concern, although the airline experiences growing demand from other sectors.
Under a law in place since 1974, federal government employees can only travel on airlines owned by an American company, regardless of cost and convenience. American-owned carriers include United, Delta Air Lines, Southwest, and Alaska Airlines.
The CEO of United Airlines said that government employee travel "has fallen off" since President Donald Trump's inauguration. Government travel makes up 2% of United's business.
United made almost $52 billion in total passenger revenue in 2024, so even a minor decline in government passengers could set it back by millions of dollars.
I don't know how long that's going to be persistent, but it quickly gets filled up with other demand for our business. But we have seen some slowing in government sales.
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