High oil=low prices?
by Kate Bonamici and Barney Gimbel, FORTUNE Magazine

(FORTUNE Magazine) - Delta (Research) and Northwest (Research) may finally settle the showdown with their pilots' unions this month, but that won't bring an end to industry chaos.

Though oil prices and airfares are still on the rise, don't expect it to last. Why? Because that would make sense--something the airline business rarely does.

"Expect fares to fall," says veteran industry pundit Joe Brancatelli. "It is what has happened every time oil prices have spiked." One reason: Airlines always overestimate what business travelers will pay. So as walk-up fares increase, business travel decreases. To make up the short-fall, airlines start price wars. It might all add up to reasonable summer fares. Top of page

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.