Airlines may price their way out of recession


Airlines are facing higher fuel costs. And, they are facing lower demand for each seat. This has lead industry group International Air Transport Association (IATA) to predict that the global airline industry will lose $9 billion this year.

One theory, espoused by some analysts is that the best way out of the mess is to cut capacity and raise prices. One is relatively easy. The other, probably not.

According toReuters, sharply cutting routes and flights should stabilize prices. If wishes were horses all the beggars would ride.