Is This The End...?

Wed Sep 19, 2001 3:08 am

Is this the end of the airlines? I have read reports that CO is losing money, as is DL, NW, and AA, and UA. How is JETBLUE Doing. Are they ok. What is going on here. I have been so busy grieving that I have not paid much attention to the airlines, but now it is making news. WHAT IS GOING ON HERE.
Posts: 2179
Joined: Tue Jun 29, 1999 11:05 pm

RE: Is This The End...?

Wed Sep 19, 2001 3:11 am

Well, let's see:

-- First, the slower economy has led to plummeting business, particularly high-yield business travelers.

-- Competition from low-fare carriers.

-- Fuel prices are up over the past few years.

-- The terrorist attacks left passengers fleeing.

-- The short-term outlook looks dismal as demand drops.
Free-thinking, left-leaning secularist
Posts: 448
Joined: Sat Sep 25, 1999 12:01 pm

This Is Not The End

Wed Sep 19, 2001 3:17 am

While the industry as a whole will suffer because of this, there is no way that the airlines will all face "the end." That defies basic laws of supply and demand. There is still demand for air travel. Granted, now the leisure market will dry up for a while, but it will be back to normal (I think.) Business travelers must still get from point A to point B.

As of this post, I do not know if the Federal Government will provide some money to aid the airlines. Even if they do not, some airlines are in a good enough financial situation to get through this tough time.

We will probably see some airlines that have a hard time (but many of them were having a hard time prior to the terrible terrorist attack.) But I don't think this is the end of the world (literally and in figurative airline terminology.)