PPRuNe Forums - View Single Post - Growing Evidence That The Upturn Is Upon Us

Re-Heat · 17th July 2008, 18:36

Rex

You are naive in the extreme if you do not think we are facing a recession, particularly in the aviation industry.

Take this - http://iata.org/NR/rdonlyres/4CC9ABE...ion_June08.pdf - the report from IATA, the industry body themself.

The US is flirting with recession, as has been reported in a number of media outlets. Rising unemployment and falling output are the reality. Whether or not it becomes a technical recession or not is semantics - the demand is slowing.

The danger for wannabes is that, depending upon the industry they currently work in, slowdowns may not be obvious for a while. Furthermore, to counter a misconception posted above, high loads on aircraft do not necessarily equate to profitability - hence Ryanair grounding aircraft this coming winter rather than flying them at a loss.

Remember - there are two sides to revenue before you take off the fuel costs - price and volume.

17th July 2008, 18:36	#43 (permalink)
Re-Heat Join Date: Dec 1999 Location: UK Posts: 1,516	Rex You are naive in the extreme if you do not think we are facing a recession, particularly in the aviation industry. Take this - http://iata.org/NR/rdonlyres/4CC9ABE...ion_June08.pdf - the report from IATA, the industry body themself. The US is flirting with recession, as has been reported in a number of media outlets. Rising unemployment and falling output are the reality. Whether or not it becomes a technical recession or not is semantics - the demand is slowing. The danger for wannabes is that, depending upon the industry they currently work in, slowdowns may not be obvious for a while. Furthermore, to counter a misconception posted above, high loads on aircraft do not necessarily equate to profitability - hence Ryanair grounding aircraft this coming winter rather than flying them at a loss. Remember - there are two sides to revenue before you take off the fuel costs - price and volume.