Originally Posted by
flynavyj
news was reporting that airlines really have the potential to turn a profit come 2009 with fuel prices at their current levels. But, the mentioned that much of that was as a result of route cutting, and the overwhelmingly full load capacity. Honestly, just as easily as they could now "turn a profit" they could lose it all over again if oil prices spike once again. I don't know if I'd expect to see additional trimming just for the sake of doing so, but, I'd be hard pressed to expect a lot of growth right now....might not be the smartest business move, if there is growth, i'd much rather see it at the top, than at the bottom....
While I agree there is room for profits next year, I think there is considerable momentum in the cost trimming, rasing fares, and other balance increasing programs that will take time to slow and re-tool the thinking into growth.
I would doubt there is going to be much growth until mangement groups feel like they are down playing damage control with the balance sheets. There could also be some problems with airlines trying to re finance their debt for growth. I would guess right now some of the larger airlines are already too leveraged to the point they cannot breath.
Reeves