The year 2009 will go down as one of the worst for the airline industry. Many airlines were looking towards 2010 as a possible ray of light in travel…and then a terrorist tried to blow up a plane on Christmas Day.
Since the events of just about a week ago, airlines have seen their stocks sink. American (-5.7%), Delta (-5.3%), United (-4.7%) and Southwest (-2.3%). But many travel insiders claim that the incident’s impact will do little to effect the overall airline picture for the coming year.
Of course negative air travel news is not something anyone in the airline industry wants to see plastered all over televisions, newspapers and blogs. The airlines are still coping with a nearly $3 billion loss this past year.
Up until five days ago all the airline executives were doing was patting each other on the back and saying that 2010 would be the year of travel rejuvenation among consumers. Stocks from most major airlines were jumping back up and even business travel was waking up from a nearly two year slumber.
So will last weeks failed terrorist attack on a U.S. plane hurt the airline industry in 2010? Only time will tell of course, but if I was a betting man, I would say that the upcoming year will be better than last year and to expect affordable flights pretty much throughout the next 12 months. Lets just hope that the T.S.A. doesn’t add anymore crazy rules to hurt business. Who am I kidding? Of course they will.
What do you predict 2010 travel will be like? Do you see fares going back up or will we see even more outrageous deals like in 2009?
Source: Business Week