Reuters - The government plans to expand airport security measures starting as soon as Friday, adding to those just put in place in response to a foiled overseas plot to blow up U.S.-bound airliners, industry and other officials said.

Reuters - Security fears may dampen demand for air travel in the short term, industry watchers said on Thursday, after British police foiled a plan to blow up transatlantic jetliners, but they won't throw U.S. airlines off their long recovery from the September 11, 2001 attacks.

Reuters - Tighter restrictions on carry-on luggage, including bans on liquids, will disrupt air travel for at least several days and make it even more of a headache for passengers already sick of crowded planes and long lines, experts said.

The U.S. government today raised its threat warning to the highest level for commercial flights from Britain to the United States in response to a terror plot disrupted in London. The Associated Press reports United, American and Continental airlines were targeted, according to counterterrorism officials.

Reuters - U.S. airlines raised fares by up to $10 one-way for tickets geared at business travelers, taking advantage of robust demand at the tail end of the peak summer travel season.