LAXintl From United States of America, joined May 2000, 24790 posts, RR: 46 Posted (6 years 4 months 6 days 22 hours ago) and read 2568 times:
Things sound peachy up North.
Quote: Air Canada, WestJet See Few Woes From US Economy
March 19, 2008
Canada's two major airlines said on Tuesday they have yet to see domestic demand for air travel slacken because of the slumping US economy, though fuel costs are a rising concern.
Speaking at a Toronto investment conference, the chief executives of Air Canada and WestJet Airlines said domestic demand for air travel remains robust and there has been little sign so far of the turbulence that has roiled US carriers.
"With fuel the price it is and fares that are going up to cover that... we've been watching very closely to see how that's impacting demand," Montie Brewer, Air Canada's chief executive, said on the Webcast of his presentation. "Thus far, we've not seen any dramatic change in our booking levels even though the fare increases have gone in."
Calgary, Alberta-based WestJet, which has reported record monthly capacity results for better than a year, said it too has not seen its advance bookings decline because of the economy.
With oil prices near USD$110 a barrel, the cost of jet fuel is a concern for both companies, the executives said. The two carriers have been able to pass through some of the costs to customers and the strength of the Canadian dollar has also served to mitigate some of the rise.
There will be somewhat of a delayed effect I suspect. I think AC is somewhat insulated against it since so many of their flights are to international overseas destinations to Latin America, Europe and the Far East, and they have few if any competitors on trans-border routes from their primary hubs to the larger markets south of the 49th. WS is similarly insulated with a strong trans-border market with little competition from YYC.
DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
Connector4you From Canada, joined May 2001, 932 posts, RR: 2
Reply 3, posted (6 years 4 months 6 days 18 hours ago) and read 2351 times:
Quoting LAXintl (Thread starter): "Thus far, we've not seen any dramatic change in our booking levels even though the fare increases have gone in."
After a quick check on AC and WJ domestic fares you've gotta choose one, there is no other option. US's fares went suddenly up and so even that third option is out of reach as of now. So yeah you could certainly tell that the two above are enjoying the time of their lives !
YYZTPA From United States of America, joined Mar 2006, 38 posts, RR: 0
Reply 4, posted (6 years 4 months 6 days 18 hours ago) and read 2306 times:
Quoting SLCUT2777 (Reply 1): There will be somewhat of a delayed effect I suspect.
While a downturn in the US economy will have a global effect, US carriers are hurt now by the dual impacts of rising oil and falling $US.
How much change was there in the price of oil between 2000 and 2008 in: $C; Euro; Yen; etc.?
Of course the price has gone up for these currencies but not to the degree it has with the $US. Even though the price of oil is tied to $US, oil producing nations have flexibility in pricing since oil is a global commodity. They have no problem adjusting price to account for the value in Euro or any other strong currency. It is a worldwide market.
Thus the relative strength of foreign carriers compared to the weakness of US carriers.
More questioning needs to be directed as to the weakness of the $US.