Business travelers are flying less and they've become better bargain shoppers, especially when looking on the Internet. In August, average fares for US travel in business and first class were 13 percent lower than a year earlier and coach fares were down 9 percent, according to the Air Transport Association.
The airlines have "provided a lot of opportunity for people to find much lower-priced seats," said Eric Connerly, a fund manager at Boston Partners Asset Management LP, which owns shares of several airlines.
Businesses started reducing travel budgets early last year as corporate profits began to shrink. The Sept. 11 attacks deepened the decline in travel and fares, and the recovery has been weaker than the airlines expected.
Carriers reduced seat and flight capacity 20 percent after the attacks to match the lower demand and reduce expense. Capacity was still down about 9 percent in August from a year earlier.
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