According to an article in the Motley Fool, the U.S. airline industry is starting to see positive signs. Second quarter earnings were announced last week with profits either meeting or beating expectations. Looking deeper into the industry, the airline industry experienced quite a hard spring, but with a decline in fuel prices for the year, this was offset. Just when it seems like oil prices might be recovering, they always have a knack for kicking right back. Currently, Gulf Coast jet fuel prices have climbed by 20 cents since June. Because of the recent hike, airlines need to continue to have revenue growth in order to have better future earnings. This summer season is looking good as far as demand as more people are traveling and using the services of airlines. Hopefully the increasing demand will continue the positive momentum we are seeing in the industry.
Quoted from the article, “The overall picture in the airline industry this summer is one of stability. While jet fuel prices have risen somewhat in the past month, they are still comparable to last summer’s levels. Meanwhile, all of the major airlines expect to post modest but respectable unit revenue increases.”
As the economy continues to improve and rebound, more Americans will hopefully travel. The auto industry, like the airline industry is seeing a similar result of an improving economy. As time continues to move on post-recession, chances are the major U.S. airlines will see increased revenue as people feel more comfortable taking the time and money to travel and enjoy themselves.
via Barry Oberholzer http://barry-oberholzer.com/airline-industry-taking-off/
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