Cheap airplane tickets as well as cheap vacation packages could remain abundant if increased airport security means fewer people are willing to travel and the airlines must further discount tickets to induce people to fly.
A 1% decline in air travelers would be equal to a revenue reduction of than $1 billion. All it would take would be for an average of two or three fliers staying off every plane for this type of profit hit to be realized.
A National Business Travel Association survey of corporate travel managers showed that 42% said that the failed Christmas day attack raised new safety concerns. 2% of these managers indicated that they would reduce international trips because of their concerns. That does not sound like much, but even very small reductions in the number of business travelers can have huge impacts on the airlines bottom lines.
The one potential bright side of increased security for the airlines will come if Canada extends its temporary band on carryon luggage (with a few exceptions) and other countries follow suit. The more bags travelers are required to check, the more income the airlines will make from baggage fees.