Outlook for 2012 (so far...)

[Mig29]

I don't want to sound all "doom and gloom", just relaying the headlines from a sample of air carriers with their financial results for 2011/2012 (1st quarter). The fuel prices are the main culprit, and if they continue to soar, we may have a rough summer....

Lufthansa warns of lower operating profit in 2012 amid high fuel costs. (They posted around 1 billion euro profit in 2010/2011, so when they are predicting lower profits, being the heavy weight in the airline business, things are not good for other carriers.)

Southwest Airlines says high fuel prices mean it won't earn a profit in 1st quarter (when is the last time you heard they didn't make a profit??)

Cathay Pacific's 2011 profit dives 61% on high fuel prices, weak cargo demand

Struggling Kingfisher Airlines cuts international flights. (Kingfisher Airlines (IT), struggling for its survival, said that it is "curtailing" international flying. The Indian airline didn't give further details on which flights are being cut; in recent weeks it has been operating well below half its schedule. The carrier operates A330s to Dubai, London Heathrow, Singapore, Hong Kong and Bangkok.)

Transat first quarter loss widens as higher fuel costs affect its operations

Spainair and Malev are already gone in 2012.....maybe it's time for consolidation?

[slowstream]

I think we should Minister Rait on that one, high fuel prices are not good for the economy!

[WileyCoyote]

High fuel prices are going to kill western society as we know it, not just airlines!

[Troubleshot]

This is one of the reasons I left aviation and got into wind turbine industry. The rise in fuel costs are killing a lot of industries and the governments seem to be investing a lot of money into this sector (renewables). It is scary to think where the economy will be in 10-15 years from now. Probably one of the main reasons the U.S. Government and NATO have not taken military action against Iran, doing so would most certainly send the Global economy spiraling out of control.

[Mig29]

Our Minister has not be aware of the spiking gas prices yet....she's still waiting for her Twitter report to come in, as she stated the other day in the Globe & Mail regarding alleged misconduct of the AC pilots "abusing" their sick days. I mean, when did Twitter become a credible source for a MINISTER!??