American Airlines announced a record-setting order for new aircraft today, and it shows where the airline industry is headed.

The Dallas-based company will buy 460 planes from Airbus and Boeing, with options for another 465. The massive order comes as airlines rush to reduce operating costs by replacing their aging fleets with new, more fuel-efficient aircraft. The order brought with it an announcement from Boeing on the fate of the 737, which will be updated and not replaced…READ MORE.

My Take: Stories like the one above are helpful to investors assessing trends.  The direct impact spoken of in the article is to American Airlines and airplane manufactures, but the underlying story is that American Airlines, by putting their money where their mouth is, is stating that fuel costs will remain high into the foreseeable future.

American Airlines is a large company with the resources and experience to know the value of thinking strategically in terms of large purchases.  If they foresaw a weaker fuel market in the future, then I’m sure it would have changed their way of thinking in terms of new orders.  Their bet lies on strong fuel prices for the long-term (Remember a plane is not a short-term investment.).

The point of this entry is that while American Airlines is not the end all in terms of knowledge about energy trends, their actions are a piece of the puzzle in foreseeing what lies ahead.  If you know what lies ahead, then you have a much better chance of succeeding in the investments you make.  Don’t forget the underlying story in the story.