In this podcast, Helane Becker, Director at Dahlman Rose & Co., shares her perspectives on the greatest challenges ahead for the airline industry. Becker was chosen as a top analyst in The Wall Street Journal's Best on the Street Analysts Survey this year. Data for the survey is provided by FactSet Estimates.
Becker gives her thoughts on the opportunities and pitfalls that are possible as a result of the United and Continental Airlines merger, the impact of rising jet fuel prices upon the industry as a whole, and the reasons why airlines are increasingly uncomfortable about online booking services such as Kayak, Orbitz, Expedia, and many others.
To listen to the podcast, press play.
Highlights from our episode:
Especially amidst continuing concern about the strength of our economic growth, the volatility of jet fuel prices resulting from the price of crude oil has impacted the way airlines plan for the future
In 2008, airline companies first had to deal with increasingly volatile fuel prices, and as a result the airlines began to cut capacity and run fewer flights to save money, as part of an effort led by United Airlines
Business travel really dried up in 2009, and these tickets are traditionally the highest priced items because of last-minute bookings; starting in September of 2009 and extending to the present, business and international travel began to pick up and the profitability followed
The largest opportunity for United and Continental as a merged entity is being able to get rid of older planes as they combine inventory; the greatest challenge will be getting the two different technologies of their booking and in-flight systems to communicate properly
Ticket provider services, like Kayak or Expedia, are a risk because they absorb some of the opportunity for airlines to upsell services, and they can result in client-facing problems because trips booked with multiple different airlines can make missed connections and layovers much harder to accomodate
Check back soon for the next installment of Talk to the Analysts, which will release in June.
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