Airlines in this recession
#1
Gets Weekends Off
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Joined APC: Feb 2006
Posts: 564
Airlines in this recession
I have not been around all that long, but it seems airlines may be doing better now with the lower oil. Is it possible for airlines to do well and expand while the rest of the economy is bad?
#2
Since 2001, we have seen the airlines suffer from issues other than the general economy: Terrorism, SARS, oil prices. But that does not exempt the airlines from economic malaise.
The lower oil prices will help reduce the damage that's all...assuming you didn't hedge at $145/bbl
#3
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Joined APC: Sep 2007
Position: B737 CA
Posts: 1,518
To do so would completely destroy the significant improvements in yeilds they've made over the last year and maybe make it impossible to make money with $25 oil. Best case scenario is stasis; I think we'll see continued contraction at some airlines. Just my opinion.
#6
#8
I think that during this recession you will see controlled expansion in certain companies. People who normally jet around first class might move down to coach and some of the normal coach passengers might head for LCC's only. IMHO the carriers you will see do well will be these LCC's that are not hedged and are able to fill some seats with the people who still need to travel.
#9
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Joined APC: Jan 2008
Position: R U Serious?
Posts: 261
Typically airlines are the first to feel the economic downturn.....the good news is when things start swinging back up airlines are the first to feel the upturn.
Lesson: If the airlines go so do the markets, if the markets go the airlines already went.
Lesson: If the airlines go so do the markets, if the markets go the airlines already went.
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