Oil price to create airline casualties this winter?
 

If the info I have been given today is true, airlines will be flying routes this winter which will lose them lots of money, compared to their yields, simply due to the huge increase in Jet A1?

Airlines 'hedging' for the winter are finding 'silly' prices even though they have estimated yields and sold seats at prices according to past experiences? Fixed costs are rising alarming!

Lo-Co's are used to losing money in the winter and making up for this during the summer. Indications are that winter loses will be excessive in comparison to forecasts?

Can all the Lo-Co's survive this winter, cash flow is paramount?

http://static.zsl.org/images/width15...04-web-305.jpg

Buster

I would have to agree with you

The best indication that they are doing badly is the number of airlines with Summer 2006 already on sale, get the cash in now and hope to live on through the winter

I don't know enough about the aviation industry to have a relevant opinion.

However, about this time last year I do recall the CEO of Ryanair saying there would be "a bloodbath" within the low cost airlines during the winter of 2004-2005.

As far as I know there wasn't.

Is it a case of the bloodbath being put back a year or was it the often-seen O'Leary posturing on behalf of his airline?

I'm not sure that having Summer 2006 on sale is a sign of weakness.

Surely it is the right thing to do to steal a march on your competition. Some airlines who have released their summer schedules have only released certain routes which are set in stone and unlikely to change.

Legacy carriers tend to allow bookings up to 11mths ahead at any stage. It is only the LCC's that have changed their policy to a seasonal release in order to (a) hype up and give a reason for increased publicity at a given time and (b) to avoid planning so far ahead and inadvertently take bookings on routes the airline may not be planning to operate in 11mths time.

I would have to say that I don't see the release of Sunner '06 schedules and financial concerns as intrinsically linked.

...what is the relevance of the bear in your post?


:confused:

Buster,

I certainly think that the increase in crude oil price is going to cause casualties in the aviation industrie. Especially with the winter comming up... Some airlines are allready "living on the edge" and these increasing prices might just push them over.. I supose it just depends as well on the winter loads.

cheerio:cool:

EV,

The relevance is in his name:rolleyes:

It might be the high price of fuel that is causing the problems, but it will be the banks that pull the plug.

I don't think that the question should be limited to low cost airlines. Can all of the legacy carriers survive?.

..what is the relevance of the bear in your post?

perhaps something to do with the name?

(wild guess)