Wall street Journal story about how $65 oil will affect the airlines
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Wall street Journal story about how $65 oil will affect the airlines
article appearing in The Wall Street Journal regards sky- high oil prices specifically affecting airline profits.
It was sent (e-mailed) to me this AM and
I almost swallowed my coffee cup in reading the numbers quoted !
For example, if oil hits $65.00 per barrel (vs $45.00 per barrel), North West's 2006 estimated net income goes from PLUS $315 million to MINUS $750 million !
Delta, from -$425 million to -$1623 !
The other 8 carriers shown in the article's chart are proportionately just as badly affected and it's anyone's guess where it's all going to end.
Any one have access to this paper and able to post story here? I am not a subscriber so I do not have access.
It was sent (e-mailed) to me this AM and
I almost swallowed my coffee cup in reading the numbers quoted !
For example, if oil hits $65.00 per barrel (vs $45.00 per barrel), North West's 2006 estimated net income goes from PLUS $315 million to MINUS $750 million !
Delta, from -$425 million to -$1623 !
The other 8 carriers shown in the article's chart are proportionately just as badly affected and it's anyone's guess where it's all going to end.
Any one have access to this paper and able to post story here? I am not a subscriber so I do not have access.
Join Date: Mar 1999
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Big deal. All they have to do is raise fares proportionately - if they all do it, nobody loses a competitive advantage.
Airlines in the Southern Hemisphere have already started to raise or add a fuel surcharge - in the end, the customers will pay.
'Twas ever thus, as a brief review of history will tell you.
Airlines in the Southern Hemisphere have already started to raise or add a fuel surcharge - in the end, the customers will pay.
'Twas ever thus, as a brief review of history will tell you.
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Both Qantas and Cathay Pacific have added fuel surcharges to every ticket. They give very good service, and charge proper fares for it. Until the US airlines realise that surly, overweight cabin staff, and inadaquete service and food are no longer good enough, they will continue to lose large amounts of money. (sorry about the 'overweight' comment...but, well, you know...). If BA, CX, QF and many other airlines make almost RECORD profits over the last year, then perhaps the US carriers had better understand what the difference is, and start to apply it to their operations. Selling your tickets for less than cost, and chasing each other down into oblivion is not the best business model I have ever heard of. You have to wonder just what good US business school MBA's really are....?
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Yeah we've got fuel surcharges here as well. Had them for years, it seems. They keep getting larger - nothing ever goes down. So, increased ticket costs will knock out 2-3% of the punters but if the economies keep performing, people will still be flying - after all what ship are you going to book to get from Australia to Britain.
I'm more worried about China's insatiable appetite for oil products. I seem to remember that what kicked Japan off in the forties was being deprived of fuel.
I'm more worried about China's insatiable appetite for oil products. I seem to remember that what kicked Japan off in the forties was being deprived of fuel.
