Here's a contrast on Airline business and oil price: Oil price is flying high while Airline bussiness is flying low. Airline businesses are directly affected by the oil price increase. As easyJet said, it may drive a weaker airline business if the oil price trend will continue. Recently, merging and acquisition of airlines companies was already in the news. 
The budget airline reported a 15% jump in passenger numbers for the six months to March 31, with revenue growing 24% to £892.2m. But its pre-tax losses spiralled to £57.5m, triple the loss it made a year ago. The loss, which was expected following the firm's profit warning in March, was primarily caused by dearer jet fuel, which costs 80% more than a year ago.
Every $10 increase in the cost of a barrel of oil cuts around £2.5m off easyJet's profits. Harrison claims the company's relatively young fleet - its 157 planes are three years old on average - give it an edge.
0 comments:
Post a Comment