Agents doubt Airlines' ability to turn a profit by summer. (In the News).(January airline traffic drops)(Brief Article)(Statistical Data Included)

Travel Agent, February, 2002 by Shannon, Darren

WASHINGTON--Predictions by a plethora of airline CEOs that the domestic airline industry will be able to post a profit by the summer has been cast in doubt by agents, still the main sellers of airline inventory across the U.S. Travel retailers cite security delays, the continued absence of business passengers, a public newly conditioned to expect bargain prices and a shift of agents toward a fee-based system as major hurdles to a turnaround in the airlines' fortunes.

This view places the carriers in a precarious position after posting losses nearing $10 billion in 2001, the worst performance in U.S. airline history. And despite widespread cost-cutting measures in capacity, route networks and commissions, agents say the shift by airlines to the Internet will...

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