1kBill
Jul 17, 06, 5:18 pm
Article from today's WSJ Electronic Edition:
DOW JONES NEWSWIRES
July 17, 2006 6:24 p.m.
HOUSTON (Dow Jones)--A further significant jump in oil prices would rock the U.S. airline industry, "conceivably endangering the survival" of carriers that have filed for bankruptcy protection, Delta Air Lines Inc. (DAL) and Northwest Airlines Corp. (NWACQ), Standard & Poors said in a report Monday.
...
Although high fuel costs have generally harmed airlines in recent years, the industry has been able to raise airfares over the last year because of strong demand.
"However, a fuel price rise to $100/barrel would drive costs beyond what could be recovered in higher airfares," S&P said. "Furthermore, high oil prices could well slow the U.S. economy, eroding pricing power for airlines."
Full article is here, (http://online.wsj.com/article/BT-CO-20060717-713933.html?mod=air) but may require registration.
Article did not explain why Delta and Northwest were singled out, but perhaps only because they are still in bankruptcy.
DOW JONES NEWSWIRES
July 17, 2006 6:24 p.m.
HOUSTON (Dow Jones)--A further significant jump in oil prices would rock the U.S. airline industry, "conceivably endangering the survival" of carriers that have filed for bankruptcy protection, Delta Air Lines Inc. (DAL) and Northwest Airlines Corp. (NWACQ), Standard & Poors said in a report Monday.
...
Although high fuel costs have generally harmed airlines in recent years, the industry has been able to raise airfares over the last year because of strong demand.
"However, a fuel price rise to $100/barrel would drive costs beyond what could be recovered in higher airfares," S&P said. "Furthermore, high oil prices could well slow the U.S. economy, eroding pricing power for airlines."
Full article is here, (http://online.wsj.com/article/BT-CO-20060717-713933.html?mod=air) but may require registration.
Article did not explain why Delta and Northwest were singled out, but perhaps only because they are still in bankruptcy.