An interesting and insightful read from Bill Swelbar’s blog.
"The US airline industry has endured the unthinkable since late 2000. With rare exception, there is not one year that can be described as a whole, but rather a tale of two halves. Even the year 2000 was that way when the first half had all stars aligned and the second half was the beginning of a revenue decline that still continues.
As fuel marched from $90 per barrel in early 2008 to $147 on July 11, unit revenues were on the rise. Ancillary fees became a part the industry vernacular. Then in late summer of that year, as fuel prices dropped nearly as fast as they rose, unit revenues began to freefall. And they continue.
The Airline Data Project demonstrates that passenger revenue for the airlines covered increased $3.8 billion in 2008 while fuel expenses increased some $11 billion. Year-to-date passenger revenue in 2009 is down some 20 percent thus far, while capacity has dropped 8 percent."
To read more, visit: http://www.swelblog.com/articles/meanderings-on-us-open-golf-and-the-us-airline-industry.html
