U.S. airlines seen as down but not out

NEW YORK, Aug. 21 (UPI) -- Troubled times at U.S. airlines may not be over, but there is some light at the end of the tunnel, aviation industry analysts say.

The biggest change in the last two months and a surprise to many is the sudden retreat of oil prices, which peaked July 11 above $147 per barrel, USA Today reported Thursday.

Crude oil prices have fallen more than $30 per barrel since then.

In the meantime, airlines have cut back on flights to cull unprofitable routes and pressure passengers to fill empty seats. They have also added numerous fees that they expect will bring in hundreds of millions of dollars.

Stock values reflect the new potential. Although one or more airline may fail, the industry's stock index has almost doubled from 12.66 to 21.67 since July 15, the newspaper reported.

Analysts William Greene at Morgan Stanley said the drop in oil prices was a "game-changing event," the newspaper reported.

In an Aug. 12 report, analysts at JPMorgan said the "industry today is a significantly different one than that which gave us pause last March."