How the Economy is Effecting Airlines and Travel

In a recent article from the Associated Press, it was reported that U.S. airlines are holding steady in this economy. This is due to the fact that many filed, or were close to filing bankruptcy in the last downturn, and they were forced to take a close look at their business. At that time, they reduced debt and cut labor costs so they emerged leaner and with fewer liabilities. This is helping them to weather the recession storm fairly well, though they are still faced with challenges.

Even with all those changes years ago, all the major U.S. Airline carriers lost money last year, except Southwest, and it is estimated that the worldwide airline industry will lose $9 billion this year. Even the reduction in the price of jet fuel is not helping because with no one paying for airline tickets, fuel costs are a mute point. Airlines are holding their own by stocking cash. Southwest has sold several jets and leased them back. US Airways Group Inc., and JetBlue Airways Corp. raised money by selling debt that could be converted to stock.

Reduction in passengers is the biggest problem. Noticeably people are traveling less. Business travelers have been grounded, or if they do fly are no longer sitting in first-class seats. Many personal leisure travelers are concerned about losing their jobs and have also reduced their travelling habits. In an effort to save money, American and Delta announced their plan to make even deeper cuts once the summer vacation season has passed, offering fewer flights or using smaller planes. Unfortunately, fewer flights means fewer jobs as there is less need for pilots, flight attendants and airplane mechanics.

Those who do choose to travel will be pleased to encounter some of the cheapest travel prices in years! Carriers have slashed summer fares in an effort to lure vacation hungry travelers out of hiding, so, for those who are willing, great deals are out there for the taking. This should be great news to those with vacation ownership, knowing that you can benefit from reduced airline fares as you book travel to your timeshare resort.

So, we can’t look to airlines to provide jobs to bolster the economy, but, it appears we can expect them to provide cheap air fare rates and if that will get people travelling again, that does help the economy through money spent in the tourism industry.
1 Response
  1. Alice Says:

    Combine the current cheap airline fares with renting a budget timeshare, and you've got a perfect budget vacation package!

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