Things Are Looking Up for U.S. Airlines
The industry is beginning to show signs of a recovery, with modest increases in revenue and forecasts of growing demand this year.
After more than a year of slumping demand and sinking revenue, the nation's airline industry is beginning to show signs of a recovery, with modest increases in revenue and forecasts of growing demand this year.
The indications of a recovery, documented in recent government and airline reports, come after 14 straight months of declining revenue for the nation's airlines and passenger traffic totals that have been dropping for almost two years. Airline experts have blamed the drop in passengers on the recession, high unemployment rates and deep cuts to corporate travel budgets.
The news may be a mixed blessing for airline travelers. As demand increases, airlines are likely to gradually raise airfare rates, experts say. If demand remains strong, the airlines are expected to add more flights and new routes to meet the demand.
Although the forecasts and analysis show that airline trends are moving in a positive direction, industry experts say the airlines have a long way to go before they can expect revenue and passenger traffic numbers to return to pre-recession levels.
External Source - For the complete article click here.
Source - Los Angeles Times
