Delta just announced they plan to cut their flights 6-8% in 2009. Other airlines appear poised for similar announcements as the deepening recession cuts passenger demand. Therefore, 2009 could be another year of sharp greenhouse gas emission reductions similar to the (more…)
Posts Tagged ‘airlines’
Airlines Cut More 2009 Flights, Climate Emissions to Fall
Tuesday, December 2nd, 2008Further airline trouble ahead, but weekly oil report signals some brief relief
Wednesday, July 16th, 2008As two major airlines report large losses in the 2nd quarter, a study by Fitch Ratings just released sees the potential for major bankruptcies after Labor Day. I have written about bankruptcies earlier this year, which have been for smaller firms like Aloha and Skybus. But Fitch predicts that a persistence or increase in current oil prices would cause (more…)
Oil hits record on dollar & Iran tension
Friday, July 11th, 2008The bubble talk of a couple days ago has been muted by another record price run for oil, this time above $147 per barrel. The culprits of the day were further drops in the dollar’s value (at $1.593 per euro we are close to its record low of a few weeks back) and threats to stability in Iran. Israel and the US are playing war games while Iran tests its missiles showing that it wouldn’t just roll over if attacked. A deep recession would be guaranteed if the conflict were to take the world’s third largest exporter of oil out of the global market. Prices could hit (more…)
Daily Recap: Murky Future for Air Travel
Saturday, June 14th, 2008As the most fuel-intense travel method, flying is increasing in cost faster than road and rail. So, the skyrocketing price of oil is having a huge impact on the industry. Twenty four airlines have filed for bankruptcy in just the past six months, and a recent report by the institutions Airline Forecast and the Business Travel Coalition predicts much more contraction to the tune of “catastrophe.”
If prices stay at current levels between $130 and $140 per barrel, the report predicts an additional cost for US airlines of $30 billion in 2008. Recent changes in air travel including fees for checked baggage, current fuel surcharges, and charging for drinks and food will only raise a few billion dollars, leaving a huge mismatch between higher costs and revenue. They add that if predictions of $200 oil come true, (more…)