RickSeaney.com

FareCompare.com » RickSeaney.com » Airlines Reached the Bottom Yet?

July 2, 2008

Airlines Reached the Bottom Yet?

Filed under: Airlines — Rick Seaney @ 8:43 am

Analysts at Morgan Stanley don’t think so — yet. You see for people picking stocks catching them at the bottom is the “holy grail” and evidently it is not quite there yet.

The bottom would be when all @#$% breaks loose.

Morgan Stanley notes that Continental’s June revenue (per seat mile flown) only grew 4.5% compared to last June and was not as good as May (up 7.2% compared to last year).

They say revenue needs to be closer to 20% growth to make the airlines whole with fuel — which in theory should raise ticket prices by another 15% or so — so be prepared for more increases (20 attempts this year and likely to be more).

« Airline Ticket “Tax Holiday”: Who Should Win, You or the Airlines? ABC Column: The Future of Air Travel »