The International Air Transport Association expects airline profit to plunge 40% this year as fewer passengers travel during the recession and as fuel prices rise. But that doesn't mean you'll necessarily be able to score a good deal: Airfares are likely to keep climbing.
Light crude oil prices have been climbing in the last few days, closing the week at $88.94 per barrel on the NYMEX. If prices climb high enough, it could damage the still-weak economy by raising the costs of gasoline, jet fuel and petroleum-based chemicals. How high is too high?
As the U.S. economic recovery edges forward, these three airline stocks stand out as buys for fundamental reasons. Several analysts, including those at Value Line, see better days coming for this group.
The megamerger raises many serious questions, not the least of which is how air passengers will fare. The answer is simple: For the average flier, the combination will create nothing but more pain in terms of both costs and inconvenience.
Fewer seats and more travelers returning to the skies means you can forget landing cheap airfare this summer. A survey of the average round-trip price of an airline ticket found prices are 13.4% higher than last summer, and slightly above 2008.