U.S. Airlines Want to Leap in the Cost of the Crisis
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The third quarter of this year, the U.S. airline industry received the best quarterly performance since 1978, has ushered in a lot of recent bad: The International Air Transport Association (IATA) 12 月 14 forecast Wednesday that economic growth is slowing down due to fuel and tax cost of upgrading the 2011 global aviation industry profits will fall 40%; Then, 15 U.S. Department of Transportation announced in October the average price of U.S. aviation fuel since November 2008 reached the highest level.
Fortunately, traffic continues to rise on the U.S. airline industry to take the "alternate levy, refunds and baggage costs" strategy of the formation of a positive response echoed, in addition to the U.S. economic recovery has been strong support, the U.S. aviation industry is expected to successfully avoid the global industry decline in the profitability of the "cloud."
High third quarter results
Back in the U.S. airline industry in early November reported to the market 32 years since the most significant of its quarterly results: quarter, U.S. airlines were profitable. Delta Air profit was 3.63 billion U.S. dollars, United Airlines and Continental Airlines profits were 3.87 billion U.S. dollars and 354 million U.S. dollars, JetBlue Airways is the best performance ever ushered in the third quarter, Southwest airline's revenue also grew nearly 20%.
Rebound in the U.S. airline industry overall economic growth is closely related with the United States. First, the U.S. second-quarter gross domestic product (GDP) growth rate of only 1.7%, which makes operating capacity has been reduced through the reduction of the airlines lost only once again "moves" alternate levy, refunds and baggage fees . The costs associated with policy making on the one hand, the fees earned on the other hand, object-oriented focus on business travel business customers - as individual consumers, if only carry one piece of hand luggage on the plane ticket prices To lower the actual; new policy may in fact be achieved, "added another passenger fares" in a good effect.
Second, the United States up to 2.5% of the revised third quarter GDP growth rate value, the market for the aviation industry is very optimistic about the profit outlook. And economic growth in these two links for more waiting for the U.S. airline industry is the United States on Wednesday released the final value of the third quarter of GDP; because if the expected 2.7% of the data into true, the performance expectations for each airline Jiangzai the upper floor.
In this context, IATA lowered 2011 earnings estimates for the global aviation industry's move is especially dazzling. It said profit next year, the global aviation industry will be 15.1 billion U.S. dollars fell to 9.1 billion; margin is expected to only 1.5%, not only difficult to recover nearly 2.7% this year, further less than 7-8% of the historical best.
PK international oil traffic
IATA chief executive officer (CEO) Geminiani highlighted in international oil prices on the aviation industry a major influence on profit prospects. He believed that international crude oil price in 2011 expected to grow from 79 U.S. dollars a barrel this year, rose $ 84 a barrel, which means that the cost of aviation fuel aviation industry lifted a 27% rate of just over 26% this year.
Subsequently, the U.S. Department of Transportation also expressed concern about issues related to oil prices. The published data show that in October the U.S. scheduled airline industry an average fuel cost per gallon rose 20% to nearly two-year high. U.S. Department of Transportation expects rising oil prices may give the U.S. airline industry is recovering bring further pressure.
Driven by international fuel oil prices rising trend will certainly pressure on airlines profitability. However, the Fed issued a consumer businesses and investors to stimulate the will of a large-scale quantitative easing program, in particular, the available fiscal stimulus next year, the prospects for the U.S. economy continues to be strengthened to improve, and the resulting traffic will rebound U.S. airline industry's profitability is expected to bring basic support.
The IATA key "early warning" is not a profit decline in North American regions; IATA stressed that the most profitable airlines in the Asia-Pacific, Singapore Airlines and Cathay Pacific Airways, its profits and from this year's 7.7 billion to 46 billion U.S. dollars.
In addition, the U.S. airline industry traffic is also on the rise, Dec. 4, American Airlines announced a substantial increase in traffic thanks to the Pacific route, the company's November traffic increased by 4.3% the previous month; and fast aviation business a significant increase in traffic makes U.S. Airways in November passenger traffic has made the chain growth rate of 8.1%. |
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Author Resource:-
Chris Holigan a professianl writer from , it provides the high quality products, such as Disposable Dental Impression Tray Manufacturer, Health Care Netipot Manufacturer, and many more.
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By :
Jessie Stone
Submitted
2010-12-22 02:29:07 |
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