They say desperate times call for desperate measures. And the high cost of fuel has sparked the airlines to make major cutbacks.
For example, Continental Airlines said on Thursday it would cut 3,000 jobs, or about 6.5 percent of its work force, and retire 67 older planes as it scales down in the face of soaring fuel prices.
And earlier in the week United Airlines made a similar move eliminating 100 planes from the fleet as well as 1,400 to 1,600 jobs.
Is slashing workforce and reducing flights enough to turn around the airline sector?
I think high oil is a catalyst for the airlines to fix their business model, says Jeff Macke. And it looks like the industry is starting to improve, structurally. I think you can buy the dips.