Oct 11, 2008

Falling gas prices will play an important role now...

So far, U.S. airlines have coped well with a painful economic downturn, but a sharp decline in gasoline prices soon may lure travelers off planes and into cars for short-haul trips.

That would be a departure from a long-held public perception that flying — while increasingly expensive — still makes sense because the cost of driving is almost as bad and driving takes longer.

But with gas prices down more than 15 percent since July and air fares steady, travelers look likely to rethink that logic, said Rick Seaney, chief executive of air fare research site FareCompare.com.