Tuesday, February 9, 2010
Are the airlines finally climbing?
<p><strong><span><img
style="width:213px;height:213px;" alt=""
src="http://a323.yahoofs.com/phugc/W7XHApVIzz9I/photos/8e50509ac1a690e4530bbf59ba74df54/mr_3f90ee508d52dd.jpg?ug_____D6KXgJN8m"
align="left" width="213" height="213">Cashing in on the airline
industry’s good-news/bad-news story <br>
</span></strong></p>
<p><span>For most of 2008, the words
“beleaguered” and “airline” went together
like “chocolate” and “cake.” But things
just might get better this year. </span></p>
<p><span>On the bad news side of the page, high fuel
prices forced huge losses and brought back those familiar whispers
of bankruptcy. Then the recession slammed business travel and
tourism.</span></p> <p><span>But now, fuel
prices have come back to earth. And really, the whole fuel thing
forced big steps to become more efficient, cut flights, use
efficient aircraft, and to cut other costs. You folks out there
paying for baggage and eating Ritz crackers for lunch on jam-packed
planes know just what I mean. </span></p>
<p><span>Still, it’s become a buyers'
market. The Travel Industry Association predicts a 1.3% drop in
leisure travel this year. The airlines are tuning up their
marketing machines, and there are deals to be had if you look hard
enough. Here are some favorite ways to find them:
</span></p> <p><span
style="font-family:Symbol;">·<span>
</span></span><em><span>Get on the mailing
list — </span></em><span>Sign up for
programs like “Ding,” Southwest Airlines’ alert
service for special fare deals. Most airlines have an e-mail
service, like United’s “e-Fares.”
They’re easy to sign up for, and they provide short
work breaks through the day.</span></p>
<p><span
style="font-family:Symbol;">·<span>
</span></span><em><span>Lock in on the
latest industry news — </span></em><span>If
travel is big for you, keep up with news within the travel
hemisphere. Journalists and industry specialists watch the deals;
you can tap their knowledge without too much trouble. I like <a
rel="nofollow"
href="http://www.usatoday.com/travel/default.htm">USA
Today</a>’s travel news
summaries</span><span>. The Travel Deals page at <a
rel="nofollow"
href="http://www.bestfares.com/news-catID19.html">bestfares.com</a>
always has good deals,
too</span><span>.</span></p>
<p><span
style="font-family:Symbol;">·<span>
</span></span><em><span>Track the trends.
</span></em><span>You more analytical types will
like the latest feature on the more popular travel search engines.
Graphs show the latest trends, and even predictions of what’s
to come for airfares to your chosen destination(s). Get the latest
fare and buy, or not, recommendation on MSN’s <a
rel="nofollow"
href="http://www.farecast.com">Farecast</a></span><span>
or <a rel="nofollow"
href="http://www.kayak.com">Kayak</a></span><span>.
</span></p> <p><span>I’m into skiing,
so I like to watch New York-Denver, for instance. So for
mid-January, Farecast shows a $234 round trip on <a
rel="nofollow"
href="http://weseed.com/companies/basics/AMR/?cid=shine4">American</a>
(AMR) and advises “buy now” with an 80% chance of a $50
increase. Cool.</span></p> <p><span>While
talking about “buying” travel, I also think this
year’s power dive may have put airlines back on the radar as
investments, too. They’ve learned to fly in the worst
weather, so to speak, so could any good news finally lead to
profits? Keep an eye out at the airports—are the waiting
areas filled with unhappy travelers sitting around? Or are things
moving smoothly? That might be a good way of checking the
airlines’ stock situation.</span></p>
<p><span>After all, the airlines have learned to market
their product better. Modest fees for forward-cabin seats and
priority boarding for business travelers makes more business sense
than charging four times the base airfare for a first or business
class seat. (Although I don’t like the new baggage charges
anymore than you do.) </span><span><a rel="nofollow"
href="http://weseed.com/companies/basics/JBLU/?cid=shine4">JetBlue</a></span><span>
(JBLU) even offers a new way to order food for delivery into the
gate area at major airports. They’ve also learned to sell
through new channels, like gift cards or as premiums for large
non-profit donors. </span></p>
<p><span>Sure, it’s tough to invest in any
business that can control neither its costs nor its prices. But
when I see a <a rel="nofollow"
href="http://weseed.com/companies/basics/LUV/?cid=shine4">Southwest
Airlines</a> (LUV) at $8 and a
JetBlue</span><span> at $6 and change, I start to
wonder — is there blue sky ahead?
</span></p> <p><span>You can put
an investment “watch” on the airline industry –
and the larger travel industry – through the “Travel
Stock Market” page of <a rel="nofollow"
href="http://weseed.com/?cid=shine4">WeSeed</a></span><span>. Sign
up, fasten your seat belt, and enjoy the flight. <br>
<br> </span></p>
<p><em><span>Jennifer Openshaw is co-founder and
president of <a rel="nofollow"
href="http://www.weseed.com/?cid=shine4">WeSeed</a>,</span></em><em><span>
a new approach to demystifying the stock market for real everyday
people, and author of "<span>The Millionaire
Zone</span></span></em><em><span>.”
You can reach her at <span
style="text-decoration:underline;"><span
style="color:blue;">jopenshaw@weseed.com</span></span>.<br>
<br></span></em></p>
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