Stockbroker makes comment and everbody jumps on board
Now correct me if I'm wrong but every other airline will face the same cost pressures on fuel....................fact is many are already doing so.
Many banks are unable / unwilling to fund hedging positions with some airlines, simply because there are unsure of the overall longterm viability of the airline(s) concerned.
If someone is taking a hedging position its because they believe in a potential profit opportunity. If they likely to lose both in terms of the hedging position and the airline going bust they will stay away or charge a super premium upfront.
Airline then really at mercy of market and trust me the suppliers will know it as well hence cash upfront or limited credit terms.
The demise of Malev / Spanair plus sadly a number of others that may follow open up opportunities for those who have the ability, capacity and
to get them.
Its easy surviving a recession, the problem is surviving the recovery or the false recoveries that will happen before you are really out of it.