Losses loom for airlines, but most can stave off bankruptcy – for now
Despite losses due to a drop in passenger traffic, analysts feel that few airlines will be heading off to bankruptcy court.
As long as oil prices don’t rise again suddenly, most airlines are expected to limp along, economically, toward the end of the year.
“If I had to make a choice, I’d say you won’t see any bankruptcies before the fourth quarter of this year,” says Robert Herbst, an analyst at AirlineFinancials.com. “The traffic demand, even though the fares are low, seems high enough so they’ll have enough cash flow to keep going on through the summer. That could change drastically in the wintertime.”
Alaska Airlines studies changes for Sea-Tac landings
Hoping to save millions of gallons of fuel, Alaska Airlines is testing a new landing method at Seattle-Tacoma Airport.
Alaska is testing landing procedures using a satellite guidance technology called required navigation performance, or RNP. According to the airline, a subsidiary of Alaska Air Group Inc. (NYSE: ALK) of Seattle, the technology allows planes to “descend more efficiently and reduce aircraft fuel consumption, emissions and noise in the Puget Sound region.”
Virgin Blue says Delta venture to improve earnings
Virgin Blue is hoping that its joint venture with Delta Airlines will help stem losses on flights across the Pacific.
“We expect it will become profitable, quite profitable in the future,” Virgin Blue Chief Executive Officer Brett Godfrey said in an interview today. Atlanta-based Delta, the world’s largest airline, and Virgin Blue said they will co-ordinate routes, have common flight numbers, and extend frequent flyer programs.
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