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More Pain for the Airline Industry?

By Tim Beyers – Updated Apr 5, 2017 at 11:59PM

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Draconian security rules could do more harm than good.

Christmas Day was full of joy here at the Beyers household. The passengers of Northwest Airlines Flight 253, to Detroit from Amsterdam, weren't as fortunate. They were the victims of an apparent terrorist attack.

Various news agencies are now reporting that a 23-year-old Nigerian man named Umar Farouk Abdulmutallab allegedly tried to ignite an explosive device on board the flight as it was descending. Both the attacker and some passengers were injured in the fire that ensued. Thankfully, there were no fatalities.

Officials want to keep it that way. So when it comes to air travel, America is back on lockdown. According to a statement from the Transportation Security Administration, travelers may see additional security measures for international flights.

At least one traveler tweeting about the changes over the weekend, industry analyst Charlene Li, said that she was prohibited from using any electronics during her flight from Montreal to Chicago on Dec. 26.

If this crackdown persists, expect business travelers to be unhappy. They're used to cracking open their laptops for work during long-haul flights. Delta Air Lines (NYSE:DAL), AMR Corp.'s (NYSE:AMR) American, UAL's (NASDAQ:UAUA) United, Southwest (NYSE:LUV), and JetBlue (NASDAQ:JBLU) have either enabled or toyed with enabling Wi-Fi in the sky to cater to these more profitable customers.

And what of the device industry? Portable geekery such as Amazon.com's (NASDAQ:AMZN) hot-selling Kindle will have to remain in your bag. Thumb jockeys won't have their smartphones to play with in-flight. Overanxious kids won't be able to lose themselves in Apple's (NASDAQ:AAPL) iPod touch (once again a hot gift item this Christmas). On long flights, that's a problem.

This could hurt carrier profits, if the gadget stow-away policy is extended to domestic flights. Add-on services such as in-flight Wi-Fi were to be a key ingredient to the industry's turnaround.

But that's my take. Do you agree? Disagree? Leave a comment below to explain your thinking or offer alternatives.

Amazon and Apple are Motley Fool Stock Advisor selections.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He had stock and options positions in Apple at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. The Motley Fool is also on Twitter as @TheMotleyFool. The Fool's disclosure policy has an unnatural fear of tray tables. Yeah, we can't explain it either.

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Stocks Mentioned

JetBlue Airways Stock Quote
JetBlue Airways
JBLU
$7.01 (2.34%) $0.16
Delta Air Lines Stock Quote
Delta Air Lines
DAL
$32.15 (-1.14%) $0.37
Southwest Airlines Stock Quote
Southwest Airlines
LUV
$32.81 (-0.94%) $0.31
Apple Stock Quote
Apple
AAPL
$143.39 (-0.33%) $0.47
Amazon Stock Quote
Amazon
AMZN
$115.25 (0.16%) $0.18

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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