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Thanks To Fuel Crisis, Airlines Weather Storm

Posted in Airline NewsNo comments

When travelers find themselves on packed planes this holiday season, it could lead them to believe that business is booming for the airlines.

How previous struggles could help the airline industry weather future storms.

But holiday travel is actually off 10 percent this year, a sign not only of the troubled economy but also that there could be more turbulence ahead.

Overall, U.S. airlines predict they may lose between $4 billion and $6 billion this year.

“We are starting to hear some reports of advanced bookings being off significantly, and that of course, is a very ominous sign for what we could be looking at in 2009,” John Meenan of the Air Transportation Association said.

Despite the troubled economy, the airlines are actually in better shape than some other industries, though.

Last summer, when fuel prices soared to record highs, airline carriers were forced to lay off workers, keep planes grounded and slash flights to save money. All the trimming actually helped them, when the economy suddenly went south and they had already made extreme adjustments.

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