It’s no secret airline carriers are increasingly being weighed down by fuel costs and concerns about an economic downturn. And it’s hit their stockmarket prices, as airline stocks are at their lowest in years.

In fact, market capitalization for some airlines is less than the cash they have on hand. American Airlines (AMR), for example,  had nearly $6 Billion in cash and short term investment on hand at the end of September, but has a market capitialization of only $3 Billion.

But while this is bad news for the airlines, this isn’t necessarily bad news for air travelers.

The airlines are finding it’s harder to put through price increases to cover increased fuel costs and are increasingly reluctant to try to do so.

For some of them, the response has been to consider cutting back on flights, but that’s unlikely for the most part. Most carriers have already made cutbacks in the past few years and there’s just not much fat to trim, particularly with the possiblity that cutting back could mean a competitor gains new customers.

 Watch for some of the airlines to break ranks on trying to hold the line on airfares and start discounting airfares in a grab for more customers. While it is almost a self-defeating gambit for airlines to do so, it’s been the traditional response to slowdowns in the past.

Among legacy carriers, Northwest has often been a leader in trying to grab marketshare this way, although I suspect it’s more likely that a low cost carrier, or carriers, will be the spark for the next round of fare wars.

So while this is bad news for the bottom lines of airlines, it will likely be good news for travelers. And don’t forget you can always find the lowest airfares offered online by visting Cheapfares.com,  your source for the best travel deals.