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July 29, 2008

Oil Prices Drop: Are Airlines Safe Yet? (And What About that Office Pool?)

Filed under: Airlines, Fuel Watch — Rick Seaney @ 9:40 am

Not quite. Not quite safe, just yet.

But there is this: according to a recent note from an airline industry analyst, the dropping oil prices combined with airline capacity cuts and all those pesky fees, make it less likely that any airlines will go bust this year or next.

That doesn’t mean the industry is out of those dark woods yet, but if trends continue, watch for airline stocks to rise.

The ol’ cautiously optimistic forecast. I like it.

Still, I wonder: that office pool those financial analysts have going — the “Which Airline Goes Bust Next” pot — how long is that money going to sit around in limbo?
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1 Comment »

  1. I think it is all conjecture. We quoted S&P regarding potential upcoming airline liquidations in our piece today: http://beatofhawaii.com/what-to-do-now-standard-poors-airlines-face-liquidation/

    No one knows whether oil will drop back to the $70-80 range, or whether some event or series of events will cause it to go into the $200-300 range overnight.

    Aloha, Jeff

    Comment by beatofhawaii.com — July 29, 2008 @ 3:15 pm

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