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In the short term no but in the long term I'd like to think so. What the airlines need to start doing is Hedging oil at intervals. Once in an area where they can operate in the black, CAL is already there, they need to lock that in and get ready to party.
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Originally Posted by rickair7777
(Post 477257)
The economy may still do enough damage to airline revenues to make up for any drop in fuel prices.
Also once the furlough/fleet reduction starts, it's hard to stop it. Lower fuel prices might not change much anyway...the very fact that we now know that oil can shoot up to $150 in a matter of months or weeks will likely keep managers pretty conservative going forward. So why not hedge now to keep from worrying about whether or not it will shoot up in a matter of weeks? |
Originally Posted by WAVIT Inbound
(Post 477284)
So why not hedge now to keep from worrying about whether or not it will shoot up in a matter of weeks?
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Originally Posted by RKIKZZA
(Post 477287)
Because everyone is broke. No extra money to hedge fuel.
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Well, with oil going down in price I hope that more hiring will commence. But like it was stated before, there are a lot of people out on furlough that will be fighting for all the available slots opening. I wish all that chose to come into this industry the best of luck and prosperity! Hopefully in the next fear years we will begin to see the crest of yet another boom in the airlines.
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Originally Posted by captain152
(Post 477476)
Well, with oil going down in price I hope that more hiring will commence. But like it was stated before, there are a lot of people out on furlough that will be fighting for all the available slots opening. I wish all that chose to come into this industry the best of luck and prosperity! Hopefully in the next fear years we will begin to see the crest of yet another boom in the airlines.
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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....
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Originally Posted by flynavyj
(Post 477491)
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....
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 |
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