new IATA report out, 62% load=breakeven point
05-12-2020, 06:23 AM
#11
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Originally Posted by Xtreme87
Have you even looked at ticket prices for some city pairs? They’re not cheap.
05-15-2020, 08:07 AM
#12
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Originally Posted by senecacaptain
New IATA report out
Apparently, for 118 airlines worldwide, 62% is the breakeven load factor.
Apparently, for 118 airlines worldwide, 62% is the breakeven load factor.
05-15-2020, 09:39 PM
#13
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05-16-2020, 07:57 AM
#14
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Originally Posted by iahflyr
Big disclaimer...Based on yields from last year.
You could have 90% loads right now and not even break even because tickets are so cheap.
There is a lot of excess capacity in the system that needs to be reduced before airlines can return to profitability. I keep reminding people that even if miraculously a vaccine was released today, somehow manufactured for 8 billion people overnight, and magically distributed to everyone tomorrow, we would still be in an economic recession with tens of millions of jobless in the US alone.
COVID-19 was the tipping point. The economic recession (or depression if it gets there) is now what the airlines must fight.
You could have 90% loads right now and not even break even because tickets are so cheap.
There is a lot of excess capacity in the system that needs to be reduced before airlines can return to profitability. I keep reminding people that even if miraculously a vaccine was released today, somehow manufactured for 8 billion people overnight, and magically distributed to everyone tomorrow, we would still be in an economic recession with tens of millions of jobless in the US alone.
COVID-19 was the tipping point. The economic recession (or depression if it gets there) is now what the airlines must fight.
05-21-2020, 08:45 AM
#15
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Posts: 1,542
Originally Posted by C2078
Any recession is being caused by the COVID-19. The world (and most definitely not the US) was NOT in a recession pre COVID-19. The way you make it sound is as if we were in a recession prior to the pandemic.
What I said is that Covid-19 was the tipping point that pushed the US into an economic recession.
What is important is even if miraculously a vaccine was released today, somehow manufactured for 8 billion people overnight, and magically distributed to everyone tomorrow, we would still be in an economic recession with tens of millions of jobless in the US alone.
So if the virus disappears overnight, the airline industry is still over capacity and furloughs will happen.
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