Are things getting better?

Airline Industry to Suffer $2.3 Billion Loss in 2008 Or has IATA called wolf too many times? IATA press release

'Steep oil price increases will push the world's airline industry deeper into the red in 2005 than previously forecast.... With the full-year price for Brent crude expected to come in at around $57 per barrel, losses will rise to $7.4 billion, up from a forecast of $6 billion made in May .. based on an estimated average annual price of $47 per barrel' IATA

'..airlines are expected to lose $6 billion ... in 2002 under the middle-ease scenario outlined by IATA Chief Economist Peter Morris at the IATA Airline Financial Summit in New York' (ATW)

'net loss of $12 billion in 2001' IATA

Originally posted by Bill S
Airline Industry to Suffer $2.3 Billion Loss in 2008 Or has IATA called wolf too many times? IATA press release

'Steep oil price increases will push the world's airline industry deeper into the red in 2005 than previously forecast.... With the full-year price for Brent crude expected to come in at around $57 per barrel, losses will rise to $7.4 billion, up from a forecast of $6 billion made in May .. based on an estimated average annual price of $47 per barrel' IATA

'..airlines are expected to lose $6 billion ... in 2002 under the middle-ease scenario outlined by IATA Chief Economist Peter Morris at the IATA Airline Financial Summit in New York' (ATW)

'net loss of $12 billion in 2001' IATA

Hardly surprising everyone's struggling with the oil/fuel prices, when the oil companies themselves are reporting BILLIONS of dollars of record profits per quarter at the moment...[:(] You don't hear the likes of Esso and Shell complaining about the price of a barrel of oil do you...[?] I'm all for profitable business, but this borders on profiteering me-thinks.

[Darren Wheeler]

very little of oil companies profits come from fuel sales. The majority of oil is used in chemical productions such as plastics etc.

Interesting to see MO'L on C4 news last night claiming that FR is fine. It will not make a profit next year but is fine. He was saying, as of course he would, that GSM and Jet2 will struggle this year.

I wonder how long it will be before we start to see a reduction in service by the LoCo's and some mothballing of a/c.

Originally posted by willd
.
I wonder how long it will be before we start to see a reduction in service by the LoCo's and some mothballing of a/c.

According to this report from the Guardian (amongst others) Ryanair are already planning a 'grounding' of 20 a/c. Interesting that O'Leary claims 'oil prices are really great for Ryanair's business model'.

Paul

Originally posted by pjh

Originally posted by willd
.
I wonder how long it will be before we start to see a reduction in service by the LoCo's and some mothballing of a/c.

According to this report from the Guardian (amongst others) Ryanair are already planning a 'grounding' of 20 a/c. Interesting that O'Leary claims 'oil prices are really great for Ryanair's business model'.

Paul

They are only good to a degree however. I suspect that he is trying to put a positive spin on things as usual, and if all is fine and dandy at Ryanair why are they intending to ground 20 aircraft this winter? [?]

Isn't it normal for Ryanair to ground planes over the winter? A lot of their routes are to holiday destinations which are seasonal markets.

Originally posted by McMaddog
Isn't it normal for Ryanair to ground planes over the winter? A lot of their routes are to holiday destinations which are seasonal markets.

ISTBC but no. They are normally used heavily on winter sky routes and deployed to bases in Spain/Germany to operate to Eastern Europe.

LoCo's up until now have managed to not store a/c for the winter by opening open winter only destinations (eg: EZY's flight from BOH to GVA).

Of course charters have for years sent a/c to America/Canada for the winter hence why you see Canadian registered aircraft flying around in a lively like First Choice's. Thomsonfly this year sent a 734 all the way to NZ to operate for NZ on domestic routes.

Originally posted by willdISTBC but no. They are normally used heavily on winter sky routes and deployed to bases in Spain/Germany to operate to Eastern Europe.

I managed to find this which talks about 7 ac grounded in Winter '07. Obviously 20 is a much bigger number. I have no idea if they received extra ac this year or not though. Perhaps they did and can't identify more good yielding Winter routes to offset the extra ac.

Originally posted by McMaddog
I managed to find this which talks about 7 ac grounded in Winter '07. Obviously 20 is a much bigger number. I have no idea if they received extra ac this year or not though. Perhaps they did and can't identify more good yielding Winter routes to offset the extra ac.

ISTRC that the grounding of the 7 was at Stansted and was intended, at least in part, as a demonstration against the landing fees at the airport. Kind of 'Well, I can afford to let my aircraft sit idle - can you do without the income ...oh, and what would you do if I took all my aircraft away...'

Paul

Originally posted by Darren Wheeler
very little of oil companies profits come from fuel sales. The majority of oil is used in chemical productions such as plastics etc.

I work for Shell and actually most of their profit comes from Trading Oil which is where the price/barrel is set so while the profits do not come from fuel sales directly it is definitely the Oil Companies that are setting the prices that end up at the pumps.

[Nottingham Nick]

This story in USA Today claims that US Domestic air fares are rising steeply, but airlines are still getting bums on seats.

Nick

In time there may be a situation where people cannot afford to travel by air

Originally posted by willd
Thomsonfly this year sent a 734 all the way to NZ to operate for NZ on domestic routes.

733, and it took 5-6 days to come home, via Christchurch,cairns,singapore,goa,al ain, larnaca and finally luton!!