Annual Outlook: Global Airline Industry: Higher Fares, Capacity Discipline to Sustain Operating Profits Despite High Fuel Costs - Moody's Global Credit Research

Annual Outlook: Global Airline Industry: Higher Fares, Capacity Discipline to Sustain Operating Profits Despite High Fuel Costs

11 pages (9457 words) — Published Jun 27, 2012
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Brief Excerpt:

...+ Our outlook for the global airline industry is stable based on our view that high fuel costs and economic headwinds will limit operating profit growth. North American and Middle Eastern carriers could see modest profit improvement, as European carriers struggle with a weak economic environment and Asian operators face intensifying competition. Higher fare structures and effective capacity management will temper the burden of high fuel costs. + As long as Brent remains below $110 per barrel, we anticipate few attempts at fare increases. Nor do we expect economic growth at levels that would drive strong increases in demand for air travel to support higher pricing. More difficult comparisons beginning in the second quarter of 2012 will also limit growth in yields in the upcoming 18 months. We forecast yield growth of 3% to 6% in 2012 and 2% to 5% in 2013. + We anticipate slowing growth in passenger demand. The higher cost of travel and the impact of economic uncertainties on business confidence...

  
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Industry Outlook

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Moody's Global Credit Research—Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.

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MLA:
Moody's Global Credit Research. "Annual Outlook: Global Airline Industry: Higher Fares, Capacity Discipline to Sustain Operating Profits Despite High Fuel Costs" Jun 27, 2012. Alacra Store. Aug 01, 2014. <http://www.alacrastore.com/moodys-credit-research/Annual-Outlook-Global-Airline-Industry-Higher-Fares-Capacity-Discipline-to-Sustain-Operating-Profits-Despite-High-Fuel-Costs-PBC_143391>
  
APA:
Moody's Global Credit Research. (). Annual Outlook: Global Airline Industry: Higher Fares, Capacity Discipline to Sustain Operating Profits Despite High Fuel Costs Jun 27, 2012. New York, NY: Alacra Store. Retrieved Aug 01, 2014 from <http://www.alacrastore.com/moodys-credit-research/Annual-Outlook-Global-Airline-Industry-Higher-Fares-Capacity-Discipline-to-Sustain-Operating-Profits-Despite-High-Fuel-Costs-PBC_143391>
  
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