Why does the airline industry seem to be in a constant state of turmoil?
The period since 9/11 has been probably the most trying period in the history of the airline industry. For about four years after 9/11, demand for air travel was off, and it really took that long for demand to recover. Just as demand was recovering, the industry was hit with escalating fuel prices, which have continued to spiral out of control. Those same fuel prices are taking money out of the pockets of their consumers. It’s really a difficult situation to be in. What you’ll see is the need for airlines to increase fares, and if history is any indication, prices – combined with a weakening economy – probably will mean fewer people flying. That will in turn mean there are likely to be fewer flights. How are consumers reacting? Consumers have become dissatisfied with the deterioration in the level of customer service on the part of many airlines in an effort to reduce costs. A lot of airlines have cut head counts and eliminated the personal contact between the employees and customers.
