US airlines aim to please investors and limit the political backlash as oil prices tumble

US airlines are once again in political crosshairs, coming under scrutiny for not passing on the benefits of lower fuel costs to consumers. One legislator is calling for an investigation to determine the reasons why airlines have not lowered fares as oil prices have taken an unexpected sharp decline.

At the same time airlines are being watched closely by investors to ensure they do not rush to adjust fares in light of lower fuel costs, which can rise just as quickly as they fall.

It puts airlines in a tough position as they face consumer backlash while trying to improve their investment case to long term equity investors. Two of the largest airlines in the US - Delta and Southwest - are taking the long view that the recent decline in fuel prices while welcome, is not a permanent fixture in the airline business.