Originally Posted by
iahphx
I'm seeing a lot of $300ish transatlantic airfares this winter from the major carriers. The advent of transatlantic Basic Economy (no free checked bags) seems like a smart innovation from the majors -- just like it was smart when domestic Basic Economy was launched. It really puts some pressure on the low cost airlines that price "a la carte."
This would suggest a dark and very unprofitable winter for Norwegian.
But they will certainly be aided by the freefall in oil prices the past couple of weeks (my previous post on this was prescient -- given how many "experts" were then predicting $100 oil!). Will cheaper fuel be enough to keep the lights on at Norwegian this winter? I guess we won't know until spring.
the lower fares are a sign of the recession kicking in. Travel is the 1st thing to suffer. The big boys will hurt as well.