State of the Airlines

Thursday, January 06, 2005

NEWS: Airlines Slump on Data

A disappointing revenue report from Continental sent the airline sector into a tailspin Tuesday.

Continental reported late Monday that December unit revenue slumped
from a year ago, even as passenger demand rose. The airline's monthly
performance report draws close attention because Continental is the only
major U.S. carrier to disclose monthly unit revenue data. Airline
revenues have been sagging because of a glut of capacity and fierce
price competition, and Continental's report suggests the situation isn't
improving. Source:

My Commentary: Excuse me?!?! This report only "suggests the situation isn't improving".
Maybe this report itself only "suggests" it but when taken in context of
the state of the industry it freakin' screams it. This is more evidence
that the bankrupt airlines just need to GO so that the semi-healthy ones
can survive. Sooner or later the capacity has got to normalize.