Travelers should soon have more choices for airline service to some popular Mexican resort destinations, as the U.S. and Mexico reached an aviation agreement on September 21 that lessens some of the restrictions on service between the two countries. The existing aviation agreement restricts service in every U.S.-Mexico city-pair market to two carriers from each country.

Chapter 11 bankruptcy filings by Northwest Airlines, Delta Air Lines and Delta´s low-cost carrier Song are expected to have little if any immediate effect on travelers. Longer-term, travelers should watch for route and schedule changes as the airlines make adjustments to cut costs. Fares could drop temporarily as the carriers compete to keep customers and battle discount airlines, but analysts predict the major airlines will eventually raise prices as they struggle to return to profitability.

The corporate travel industry has rebounded since the dark days following the 9/11 terrorist attacks in the United States when business travel "was pushed off the cliff," said Cathy Keefe, spokeswoman for the Travel Industry Association of America. Business travel increased 4 percent in 2004 and is on track to climb another 5 percent this year, Keefe said. "After 9-11, instead of traveling, many employees would use the telephone, video conferencing and other alternatives to travel," Keefe said. "But you can´t replace face to face contact and a handshake, and so business travel has been on the increase, but it´s still going to be another couple of years before we reach the record levels of 1999."

British Airways carried 3.9 percent fewer passengers in August, revealing the impact of last month´s wildcat strikes by catering and baggage staff that forced it to call off hundreds of flights. The biggest impact was felt on its premium-class cabins where traffic fell by 4.7 percent, BA said, appearing to bear out analyst concerns that last month´s strikes and the ongoing disruption to its onboard meal service would turn away the airline´s core market of high-end customers.

British Airways carried 3.9 percent fewer passengers in August, revealing the impact of last month´s wildcat strikes by catering and baggage staff that forced it to call off hundreds of flights. The biggest impact was felt on its premium-class cabins where traffic fell by 4.7 percent, BA said, appearing to bear out analyst concerns that last month´s strikes and the ongoing disruption to its onboard meal service would turn away the airline´s core market of high-end customers.

Delta Air Lines is downsizing its Cincinnati hub and cutting up to 1,000 area jobs, but it might be too little too late for the near-bankrupt airline, experts say. It´s not clear how much savings Delta will realize from the cuts, but it´s doubtful it will be enough to keep it from filing for Chapter 11 bankruptcy, said Chris Lozier, an airline analyst with Morningstar in Chicago.