Wasatch Phantom

With the price of crude oil down substantially from it's highs last month (and forecast to go lower) I wonder if airlines who announced fleet reductions and furloughs will change their plans?

I haven't seen anything to indicate this, but perhaps others have.

Killer51883

i think most of them have buissiness plans based on $60-$80 a barrel for oil so many are still bleeding, they have just slowed the bleeding. Now that being said I certainly hope some of them have realized they have to change their plans to make money at $120 a barrel or else everyone who survived this round of cuts will have a problem next time the cuts come.

ExperimentalAB

Yep...they are still not adjusted to do well with $100 oil...my guess is the forecast cuts, +/- a bit...They will find how to cut costs, jack up the prices, and actually make a buck here and there.

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200SR20

That and flying is going to go down in the next month... I still see furloughs and fleet reductions in the future.

saxman66

Plus with the summer travel season coming to an end, I think the oil was going to drop anyway. Oil has always spiked during the summer months as demand goes down. I remember just in 2004 or 2005, when oil reached $50. That was doom and gloom, until 2006 and 2007, lots of majors were hiring and making a "profit." Obviously they got through that crisis, and I think its only a matter of time to figure out how to make money with oil at $120 or more. I think the airlines just like having something to whine about. There's always a crisis going on.

121PyLut

...the managers (your so-called "leaders") will continue with the "damage is done" BS for quite a while...

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Gmeter

The only thing reduction in oil prices means for them is bigger bonuses.

iahflyr

I don't think anyone in management believes that oil will stay at 110 a barrel for very long. It is probably better for the majority if they keep these cuts in place. It is nice to see management teams with forward vision, rather than being reactionary. We all knew oil prices would rise significantly in the future, but we were still basing our plans on 50 to 60 dollar a barrel oil. Planning in the 100-150 range would be wise for the short term, with longer term plans starring down the road of 150-200 a barrel oil.

AA767AV8TOR

I hate to burst your bubble but the airlines didn’t make money when oil was $25 a barrel, they didn’t make it when oil was $65 a barrel, and they won’t make it when oil is $120 a barrel.

Some things just never change in our industry.

Airline labor has been forced to share fully in the downsides and only minimally in the upsides. This must change!

AA767AV8TOR

Dark Knight

It sure doesn't help when your biggest competitor is your own government. But that would bring us in to a whole 'nother thread at a whole 'nother topic. So I'm just going to stop right here.

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