Two leading sources of airline analysis are predicting that 2019 is going to be a tough year. IBA.aero has this insight. And Ishka has this insight. As Ishka’s Eddy Pieniazek succinctly notes, “Nearly 20% of the airlines tracked by Ishka are entering 2019 with a negative outlook on their financials”. IBA offers this statement: “Whilst raising interest rates will indicate an improving economy and should improve lease yield, a strengthening dollar will hinder airline profitability and bankruptcies will follow”.
Analysis
In 2018 we saw several big airlines go under; well known brands like airBerlin and Monarch. But also startups like Primera. Low cost carriers have the thinnest margins and are least able to withstand shocks – especially from an oil price spike. But LCCs like Ryanair, with strong balance sheets have the resources to buy hedges. They also have the bank accounts to withstand shocks.
We use cookies to optimize our website and our service.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
