Airlines Poised To Regain Financial Footing | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-10.28.24

Airborne-NextGen-10.29.24

Airborne-Unlimited-10.30.24

Airborne-Unlimited-10.24.24

Airborne-Unlimited-10.25.24

Tue, Nov 04, 2008

Airlines Poised To Regain Financial Footing

Lower Fuel Prices, Cutbacks Expected To Lead To 2009 Profits

All the measures taken by the US domestic airlines to cope with the fuel crisis have had an unexpected benefit. Industry observers now say now that oil has fallen in half since its summer peak, the airlines are well-situated to withstand a drop in demand due to the slumping economy.

The Financial Times reports the biggest US airlines stand to return to profitability next year, just a few weeks after even legacy carriers such as American Airlines and United Airlines were on a deathwatch.

The paper notes corporate and consumer confidence has plummeted, but industry execs say they're prepared for the worst. In particular, Northwest Airlines says the worst economic slowdowns on record have cut revenue by no more than 1.2 per cent.

Some investment analysts are actually coming out bullish on the industry. Ray Neidl, an analyst at Calyon, has raised his rating on seven major US airlines to "add" status.

"...They have put themselves in a good position to come through the economic downturn without bankruptcies and then be able to take advantage of the recovery, most likely in the spring," Neidl said.

Doug Parker -- CEO of US Airways, another carrier some had written off for dead earlier this year -- says he's also confident. "We've got ourselves well-positioned to navigate through this," he said. "The run-up in oil forced the industry to restructure around a much different world."

Michael Levine is a former airline exec who now teaches at New York University’s School of Law. He cautions against any assumptions that fuel prices will remain low. Other industry observers say airlines competing against the combined Delta and Northwest could struggle, and that some carriers still need to raise cash.

May you live in interesting times...

FMI: www.usairways.com, www.southwest.com

Advertisement

More News

Senator Pushes FAA to Accelerate Rocket Launch Licensing

States That Current Process is Damaging National Aerospace Development US Senator Jerry Morgan is pushing the FAA to speed up the process for rocket launch licensing. He argues tha>[...]

Classic Aero-TV: RJ Gritter - Part of Aviation’s Bright New Future

From 2015 (YouTube Edition): Model Aviator Aims For Full-Scale Career While at the 2015 Indoor Electric RC Festival, referred to as eFest, ANN CEO and Editor-In-Chief, Jim Campbell>[...]

Aero-FAQ: Dave Juwel's Aviation Marketing Stories -- ITBOA BNITBOB

Dave Juwel's Aviation Marketing Stories ITBOA BNITBOB ... what does that mean? It's not gibberish, it's a lengthy acronym for "In The Business Of Aviation ... But Not In The Busine>[...]

ANN's Daily Aero-Linx (10.27.24)

Aero Linx: Cardinal Flyers Online The Cardinal Flyers Online Web site was created and is maintained by me, Keith Peterson. My wife Debbie and I have owned a 1976 RG since 1985. Wit>[...]

ANN's Daily Aero-Term (10.27.24): Clearance Void If Not Off By (Time)

Clearance Void If Not Off By (Time) Used by ATC to advise an aircraft that the departure release is automatically canceled if takeoff is not made prior to a specified time. The exp>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2024 Web Development & Design by Pauli Systems, LC