Airlines earn record profits, but consumers can still find deals

It's been a record-breaking year for airlines.

According to the International Air Transport Association, 38 million passengers could fly worldwide between Dec. 18 and Jan. 3 -- a three-percent jump from last year -- earning carriers a record $33 billion in net profits.

But travelers may also have plenty to gain from a "buyer's market," said CBS News travel editor Peter Greenberg.

"We have a weakened euro against the U.S. dollar ... we have fuel prices at a seven-year- low and of course, the recent terrorist attacks in Egypt and in Paris," Greenberg told "CBS This Morning" Friday.

The combination of these factors have made airfare and hotel bookings cheaper for the first quarter of 2016.

Travelers can especially find lower airfares for flights across the North Atlantic and those under 400 miles, as airlines compete with travelers who are choosing to drive rather than fly short haul routes.

"Most people are driving because fuel prices are low," Greenberg explained. The cost of a barrel of oil has plummeted to around $40 from $140 in 2008.

"Then you got the airlines with fuel prices down," Greenberg added, which is the single largest expense at most airlines.

American Airlines also found that a whopping 87 percent of their passengers are flying their airline just once a year. Travelers seeking cheaper alternatives are increasingly looking to fly airlines like Spirit, Frontier and Allegiant.

To combat that, American Airlines will be offering "no frills" fares, following Delta's Basic Economy fares. United Airlines is also expected to join in the trend.

"Don't expect an upgrade, any perks, no refundability - zero," Greenberg said. "The bottom line is, airlines are not into competing for the people at the back of the plane - they're competing for people in the front of the plane."