The International Air Transport Association has cut its 2011 profit forecast for the industry in half, and fares are on the rise. The IATA downgraded its 2011 airline industry profit forecast to $4 billion -- 54% less than its March forecast and 78% less than the industry netted in 2010.
It's bad enough that air fares and extra fees have been rising as fast as a plane taking off -- now, travelers must wonder if aircraft have been properly inspected. Are the costs, pains and risks of flying reaching the point where frequent fliers should reconsider their transportation choices?
The price of a plane ticket is heading sharply higher. That's because airlines face steeper fuel costs and continue to cut capacity to keep profits from falling. You can still find some relative bargains, but it's going to take a lot more planning ahead.
Southwest Airlines is flying high: It's proven consistently profitable, and it serves more passengers than any other U.S. carrier. But as the airline expands its service, CEO Gary Kelly says volatile jet-fuel prices are his biggest concern going into 2011.
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?
