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Airline Industry Outlook

posted by Stephanie Dhue, Correspondent at 6:27 PM on 03/10/08

Photo of Stephanie DhueYou’ll likely pay more for airline tickets this summer. Higher oil prices have already added as much as $50.00 to a domestic round-trip ticket. While you might think the silver lining could be not having a middle seat, don’t count on it. Higher prices will certainly ground some passengers, but the weak dollar is driving demand from foreign tourists. The Federal Aviation Administration and local airport authorities are working to reduce delays, implementing “peak pricing” plans to encourage airlines to better stagger flight schedules. The FAA will also begin rolling out its upgrade of the air traffic control system, known as NextGen. But that new system isn’t scheduled to be complete until 2025. By that time, U.S. airlines are projected to be carrying 1.3 billion passengers a year, compared to an estimated 750 million people this year.

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hi my name is mark. I'm interested in luv as a longer type of investment. Does anyone have any thoughts.
thanks

This branch of industry is an extremely critical part of U.S. economy. This situation can really influence badly on the other important branches of economy. Our government should do something to improve things.

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