Airline Industry to Profit in 2015
2015 is poised to be one of the best years for the United States airline industry.
Travel industry analysts predict that company mergers and falling jet fuel prices will lead to a profitable year for airlines. American Airlines announced its merger with US Airways last year. The new American Airlines will have a larger fleet and fly more routes due to the convergence, making the airline an attractive choice for customers. Another merger is AirTran and Southwest. AirTran has discontinued flights in December and the company is now being integrated into Southwest Airlines.
As the price of fuel continues to plunge, sources say that airlines are unlikely to lower fares, resulting in a profit for the industry.
The airline industry’s success in the coming year is also expected to grow due to the new technology on-board planes. Amenities like Wi-Fi and streaming video during flights are expected to grow in popularity, attracting even more customers.
A factor that could have a negative impact on this otherwise positive prediction is foreign travel. Henry Harteveldt, a travel industry analyst with Atmosphere Research group stated that weak international travel has the potential to damage U.S. airline profits.
"Uncertain economic climates in parts of Europe and Asia could affect U.S. airlines' international profitability. But overall, 2015 should be a year that makes airline CFOs happy," Harteveldt said.
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