Legacy Airlines Like the Look of Thanksgiving Ticket Prices
More signs of strong pricing discipline in the airline sector make the legacy stocks look worth pursuing. After well-documented decades of losses, the airlines appear more inclined to focus on profits than on passenger growth.
Recently, both Orbitz (NYSE: OWW ) and Travelocity announced that Thanksgiving airfares were expected to be 7%-9% higher than fares from last year. This trend might not be welcome news to the people planning to fly over the holiday period, but it should be very encouraging news to airlines. Yet, online travel sites such as Orbitz might struggle if the higher fares push some travelers to seek alternative transportation.
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