Airlines' Stocks Drop As Fear Of Price War Clouds The Industry

The US airline industry, that hit the headlines with record first quarter profits on the back of low crude oil prices, is now experiencing a slump as investors anticipate a revival of the old dynamics of the industry. The downfall began last month, when low-cost carrier, Southwest Airlines, increased its capacity guidance for 2015 from 7% to the 7-8% range. While this revision was consistent with Southwest's ongoing expansion plans in Dallas, things became worse when Doug Parker, Chief Executive...