MONTREAL, (Reuters) – Air Canada believes that higher-margin business travel will be “quite near” pre-pandemic levels in September. This is the latest positive sign for this once-distressed sector, a senior executive said to Reuters.

The global slump in business travel caused by COVID-19 has left leisure behind. However, the airlines report that North American businesses are now recovering as office reopens and COVID restrictions decrease.

Airlines are increasingly interested in corporate travel because they have a high demand for frequent flyers as well as a desire to offer premium, higher-margin fares.

Air Canada indicated earlier this year that business travel will fall by 40% from 2019 by June and then return to the pre-pandemic level of 75% to 80 percent by 2023.

Canada’s biggest carrier has seen a steady rise in business travel demand, but the overall rebound in air traffic is still below that of the United States.

“We’re actually very encouraged,” Air Canada Chief Commercial Officer Lucie Guillemette said in an interview on Tuesday.

“We’re certainly not close to 2019 levels yet, but we are thinking that, based on what we’re seeing, most probably by the time we hit Labor Day, or get into 2023 it should be quite close.”

Guillemette stated that transborder business travel can be particularly benefited by the United States removing COVID requirements for entry. These passengers are more likely to make shorter trips.

U.S. airlines and other travel organizations have been pressing the Biden administration for the lifting of a rule that required almost all international flight passengers to be negative for COVID-19 before they could enter the United States.

Guillemette added that “we also think some of these restrictions might be a bit more restrictive, or more difficult for business travellers, a little more than for leisure travelers.”

“If we look at how the demand recovery patterns behaved as restrictions were lifted, it stands to reason that when this requirement is removed we should see an upside without a doubt.”