Turbulence ahead for airlines despite oil price drop

Airlines are still in for financial turbulence despite a recent fall in oil prices, with many at risk of posting major losses as the cost of their top input remains historically high.
"If fuel prices remain at a reasonably low and stable level, of course it'll be favorable to operations of the company," Wang Jian, board secretary of China Eastern Airlines, told AFP.
But "despite the recent reduction in oil price, it remains at historically high levels and a significant challenge to the business," said Cathay Pacific finance director Martin Murray.
It "relieves the pressure a bit," acknowledged Air France-KLM finance director Philippe Calavia.
But he noted the Franco-Dutch group has based its financial plans on oil at an average of $98 a barrel this year.
Oil prices are "still above over budget," he said.
27/05/12 AFP/PTI/Business Standard

To Read the News in full at Source, Click the Headline

Categories: Indian Aviation- In General May 2012