Every time we come through an earnings season, we ask our beat editors to give us a smart takeaway from their industries. The news from the airlines this time around doesn't bode well for travelers. Airlines are constantly juggling supply and demand with dynamic pricing, under-performing routes versus winners — and all of this against the pressure-filled backdrop of Wall Street expectations. Now throw 40 percent fuel price increases into that mix and somebody has to emerge the loser.
As Aviation Business Editor Brian Sumers points out today, passengers are already seeing higher ticket prices as a way to help airlines offset costs, but the message from execs this earnings season is that those prices could go higher. Last time fuel costs went through the roof during the 2008 recession, airlines got very creative with new fees, too. Want more legroom? A fee. Want to check a second bag? A fee — a legacy that stays with us. Executives promise that this time around won't be like 2008. But let's see what happens in the next quarter or two, and we will be sure to let you know.
No comments:
Post a Comment