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Devils Advocate • 2 years ago

I think the hot weather this year will effect the decision process and length of time future
Holidays/flights are booked and next Summer has the potential to be a lates market,
Cash flow will be key to the LCs and a squeeze on long term future bookings will spoke the city
The last 8 years have been "Halcyon Days" for many and most Airlines and Tour Operators this is backed up by the VC interest in sector being reignited.
There needs to be a leveling out process and this will result in margins being squeezed as well as capacity - The high oil prices are fueled(exclude the pun) now by a weak £ against
the US$ which is the currency required for 80 percent of any Airlines fixed and variable costs
so the Airline will need to adjust its revenues to take this into account - without growth the
LC model does not work just to maintain current profits the LC model will need to increase volume and develop aka Jet 2 a Holiday platform so they can keep their hands in the passengers pockets more than they currently do with additional margins from accommodation and excursions plus add ons...
Consolidation is required in the LC sector the markets to crowned with Ryanair/Easy/Wizz
and Jet 2
What comes up must come down so the cycle will now change and it will be a tough year ahead due to the landscape changes not just in fuel but interest rates/Weak £ and general
apathy to book early due weather..know one wants to hear how the person sitting on the next sun bed paid half for their holiday than you paid whilst booking 9 month in advance
which is the case right now at the Hilton in Portugal...

Kane • 2 years ago

Ryanair will move planes around (6 off to Poland) and Johan has a very different and clear plan to keep his planes busy. Don’t hold your breath for an API fee cut.

Nick Cooper • 2 years ago

If well above inflation prices rises are not achievable (airlines can dream on that they are..), then capacity reduction is the only way. The market size is the market size, doesn't matter how you share it up, selling through A instead of B is not going to increase the market size. Only reducing prices (and losing money?) will do that. The worst case scenario is a choice between losing money by having too many aircraft idle or losing money by selling too cheaply.
I have never really seen the point of so many OTA's (who surely need exclusive accommodation stock and deals to thrive), other than the airlines lack of ability to exploit that market directly, but millions may likely disagree. Grab your bookings in early, because the cake may be getting smaller..

Peter • 2 years ago

Here is the evidence as to why this guy has had so many jobs. Enough said.