NEW YORK (TheStreet) --With the holiday season quickly approaching, airports around the world will be buzzing with an influx of travelers heading to their various destinations. As airports prepare for the holiday rush, FlightAware CEO Daniel Baker weighed in on current trends within the airline industry.
"Airfares are real low right now, so that shows that people can get where they want to go for a reasonable amount of money," Baker said on CNBC's "Squawk Box" this morning.
He noted several factors the airlines are taking advantage of to remain profitable, including low fuel costs, implementing various fees and optimizing seating capacity.
"Another thing they are doing is called fleet densification, the industry term for putting more seats on an airplane," Baker explained.
By adding more seats to planes airline companies boost the availability of seats, thus driving profits higher. However, passengers will have less room, and airlines must handle a lot more people.
Regarding the TSA, Bakers said it looks like they are in "pretty good" shape, and that FlightAware hasn't heard a lot of complaints regarding them from travelers.
Furthermore, Baker considers Warren Buffett's recent investment in the airline industry to be a vote of confidence in the sector.
"I think that it goes to show that the industry has really changed over the last couple decades," he said. "The leadership of these airlines has really shifted towards people that are trying to architect a profitable business."