Sector Report: Transportation

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Oct. 22 (Bloomberg) -- Boyd Group International's Mike Boyd discusses the performance of the airline industry on Bloomberg Television's "Money Moves." (Source: Bloomberg)

Well this year.

What are some of the highlights from delta that we can extend to the entire sector here?

Delta is very well managed, also managing their flows.

They are managing how they bring in the money.

In doing that, they can get more money per seat.

I think overall, one of the things you got with that airline of delta, you have the sharpest management in the industry.

They really are focusing and know what they are doing.

They are really eating their meat uncooked.

They know what to do.

When you talk about having tight management, one of the trends we see is capacity discipline.

As things have improved, they haven't increased routes or bought a new -- a lot of new planes.

That has kept their profits up.

That has been a risk, though.

Do you think that is something they can continue to do and keep that discipline?

This is a sea change.

We will have five network carries with the latest mergers.

It is like the five families they have their squabbles, but overall they are not going to go get each other anymore.

They are settled.

We will have about 5.5 or six percent less cap -- less.

It is no longer the result of metrics.

Airlines are going to put up the seats were they think they can make the most money and if they spill people, they will spill them.

Overall, what is driving air transportation volume today is what airlines decide.

Not with the economy decides.

What do you think the biggest risk is out there for future growth?

The big thing is growth is going to be incremental.

Take a look at american airlines.

They just dropped jfk to barbados nonstops which doesn't make sense on paper but overall they will bring home more money does they will carry those passengers on other routes.

The real issue as there is going to be feel.

As fuel goes up, remember, it is over $100 a arrow for oil.

There's not a single airplane designed for fuel as low as $50 and -- a barrel.

Maybe they will come down and looked a bit.

Thank you for joining us.

This text has been automatically generated. It may not be 100% accurate.

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