For U.S. Airlines, Home Is Where the Money Is
A strong dollar is hurting U.S. airlines abroad, with flight cuts to follow
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The piles of cash landing on the balance sheets of big U.S. airlines aren't evenly distributed. In fact, it’s mostly a case of cashing in at home—the rest of the world is a scary place, at least in financial terms.
U.S. carriers face a panoply of problems abroad: economic turmoil in Brazil and China, uneven fiscal recoveries in Europe, an isolated Russian economy, and above all, a robust dollar that makes tickets on U.S. carriers less affordable. All of which means that the only “sure” money these days comes from domestic routes and trips catering to American tourists looking to enjoy relative bargains this summer, afforded by a weakened euro.