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John Caulcutt

John Caulcutt

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John Caulcutt reviews the current state of the airline industry.

Posted by John Caulcutt
John Caulcutt
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on Monday, 21 November 2011
in Plane View
The air transport industry emerged from a decade of crises and shocks with an $18 billion profit in 2010. But the events that marked the first half of 2011— the tragic Japanese earthquake and tsunami, volcanoes, unrest in the Middle East, fast-rising oil prices have taken their toll; all this before the recent problems in the Euro zone, let alone the US debt ceiling crisis.
firstclassdingforjetairways
The forecast for 2011 estimate airline net profits reduced to $4 billion – less than half the $8.6 billion anticipated as recently as March. Profitability so far this year has already been squeezed by significant decline in both load factors and aircraft utilisation. Nevertheless and despite the headwinds facing Europe and the US, world trade is expanding at a rate of around 9% per year with Asia in particular still booming. With sustainable profitability remaining elusive, airlines must be prepared to market their products to an even more diverse customer base.
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