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Indicators suggest worst is behind industry: Airlines see clearer sky.

Article Excerpt
A string of recent positive developments for the U.S. airline industry suggests a brutal two-year storm finally may be blowing over. Though the climb to profitability may take months for some and years for others, carriers are cautiously optimistic as they enter the busy summer travel season.

Much of their long-term prospects, however, depend on the resumption of business travel, the pace of which will be dictated by general economic recovery and performance of each company's specific sector. Any sign of sustained recovery likely will not be evident until later in the third quarter at the earliest.

Nevertheless, airlines appear in a much less tenuous position than they were during the horrific first quarter, even after taking into account regular seasonal trends. Some have reported "stronger" advance bookings into the summer, particularly in leisure markets, and certain carriers have begun restoring domestic and international services. Sabre Airline Solutions, in an Internet presentation last week, said it expects June traffic to be up 3 percent to 4 percent versus last year. Meanwhile, airline alliances promise to generate incremental revenue, and...

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