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Oil Shock! Crude at USD100 per barrel


It's not so long ago that the forecast of oil at USD100 per barrel shocked the airline industry. Today, it is almost a cause for rejoicing. But there is another, darker side to the new scenario. The rapid deflation in the price of oil is surely more worrying for some airlines than the rally. The air is being quickly sucked out of the global economy, and with it the strong premium demand and high load factors that helped airlines ride out the fuel price storm and crises before it. [659 words]

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Graphs and data:

  • Start of the slide? IATA international passenger load factors (12 month moving average): Feb-06 to Aug-08
  • Strong US dollar: Currency depreciation since 01-Jul-08
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