Turbulence Ahead For Discount Airlines

[Jeff Helgeson]

Another view

i read recently mortgage financing has tailed off, way off and the it has been the only source of cash americans have used to finance this recovery. real income growth has declined.

having said that, can the american consumer, one who loves cheap airline tickets to take vacations and spend more on their credit card, keep these discount airlines' seats full?

There are plenty in this contry that always live beyond their means. They are always in debt , but still drive newer cars and take vacations, while complaining they just can't get out of debt. Some will buy a new car, take a vacation and rent a home and say "I just can't come up with a down payment." It is all about priorities.

I don't think the LCCs will be at risk from the above. In addition, interest rates are still at an all-time low relatively speaking. However, I agree our economy has been floating on the real estate/refinance shuffling of existing money and does not reflect new growth in the economy.

See you in Cancun, I like your new ride! Zero down and zero interest for 5 years, rock on my friend.