Reading the current research reports from investment houses' in NYC, it seems that we haven’t come close to the peak yet. A quote from The Goldman Sachs Group, Inc’s latest oil forecast analysis;
“Current oil prices are still far below the all-time highs reached in the early 1980s, when WTI reached $39.40/bbl, the equivalent of $93.40/bbl in prices of Q12005. In otherwords, oil prices would need to rise another 50% from the current $64/bbl to compare with those of the early 1980s.”
GS have been spot on forecasting the crude price over the last 12 months, and other firms reckon over USD$100/bbl by the end of the year.
Just wondering how the LCC’s with no yield seating (ie no First or J) can survive these prices. I guess it was dream days for the LCC in 2001 when prices were $17.50/bbl and they could fly plenty of beer drinking, thong wearing, yobos around. I suspect the said customers wont fly to Hamilton Is. to eat fish and chips if ticket prices rise to the level needed when oil climbs above 80/bbl???
Taking all this into account whats the forecast for bottom dweller airlines like Jet* and
VB?? Who’s mortgaging the house to buy stock???