FlyerTalk Forums - View Single Post - Do Falling Oil Prices Restore Service to Some Markets?
Old Aug 8, 2008 | 8:59 pm
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Daze
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Originally Posted by DuckFlyer
With oil now down to $116 a barrel (Aug 8th), does AS restore some of the service to certain routes that were profitable before the oil run up?
No I think it means AS starts to consider a future without bankruptcy and oblivion. All of the fare boosts and cuts have been necessary just to get the revenue to chase oil prices. If oil stabilizes or drops some, maybe the revenue will start to equal costs, and the airline business model may become viable again--it certainly hasn't been the last six months or so.
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