Perhaps, no other industry was affected by the devastating events of September 11, 2001, as badly as the airlines industry. However, it is experiencing the strongest resurgence by rising its fares. Planes are once again full and the airline industry is making profits.

The British terror plot on August 10, 2006 has had its impact felt overnight across currency, commodity and equity markets. The pound, sterling and euro fell sharply in value. But the worst affected is the aviation industry. Most European airlines and travel companies with the US-listed shares fell immediately following renewed terrorism concerns after British authorities foiled a plot to blow up the US-bound airline flights. Shares of Continental Airlines Inc. and UAL Corp., the parent of United Airlines, continued their slide the Houston-based Continental share prices fell by 7.1% in trading due to this event on the New York Stock Exchange, while Elk Grove Village, III.-based UAL fell 5.1% on the NASDAQ Stock Market. Shares of AMR Corp., the parent company of American Airlines, fell by $1.46, or 7.2%, to close at $18.83 on the NYSE, with Standard & Poor's lowering its ratings from "strong buy" to "hold". S&P's downgraded its outlook for the airline industry as a whole to neutral from positive. According to Jim Corridore, an airlines and air freight equity analyst at S&P, airlines are staring at a "less seasonally strong travel period", which typically lasts until Thanksgiving.

The effect transmitted to the Asian markets as well. Japan's benchmark Nikkei 225 index fell by 25.68 points, or 0.16%although this was driven mainly by the economy experiencing a slower-than-expected domestic growth, rather than by bombing threat. The events in the UK saw oil prices fall sharply, amidst speculations that the news would curtail travel in the ensuing weeks; dampening demand for jet fuel (although its recent climb has also pressured airline finances). If travelers indeed take fewer trips out of fear, or what David Wethe, McClatchy Newspapers call it "hassle factor", arising out of frustrations of tighter security, then the airlines could see an end to what has been a very short journey to prosperity. The timing of UK terror plot and subsequent security restrictions couldn't have been worse for airlines. After reporting a strong second-quarter profit of $1.6 bnbest showing in six years, after losing $40 bn since the 2001 9/11 terrorist attackscarriers are bracing for a seasonal slackening in demand amidst continual escalating fuel cost.

MBA Review Magazine, Global Aviation Industry, Airlines Industry, European Airlines, Equity Markets, Commodity Markets, Asian Markets, International Air Transport Association, IATA, Financial Crisis, American Airlines, British Leisure Industry, Global Economy, Vanguard Airlines.