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Airlines give proof to economic conspiracies.

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posted on Jun, 8 2009 @ 03:56 AM
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World airlines seen losing $9 billion this year


KUALA LUMPUR, Malaysia (AP) -- The world's airlines will collectively lose $9 billion this year - nearly double the previous projections - and face a slow recovery as the economic crisis saps air travel and cargo demand, an industry body warned Monday.

The International Air Transport Association, which represents 230 airlines worldwide, increased its loss estimate from the $4.7 billion it forecast in March, reflecting a "rapidly deteriorating revenue environment."


These paragraphs alone show that what ever numbers we are fed, we are being lied to. We have some investors and economists telling us we will be good by next year. Numbers do not just double out of no where.


"There is no modern precedent for today's economic meltdown. The ground has shifted. Our industry has been shaken. This is the most difficult situation that the industry has faced," said IATA Chief Executive Giovanni Bisignani. The Geneva-based association also revised its estimated loss for last year to $10.4 billion from $8.5 billion previously.


Finally some one that is in a corporate position, calling it how it is. But hey look out seems to me some one might be looking for a bailout. I think we might want to keep an eye out on the airlines. They are starting to set the stage.


The association expects the industry fuel bill to shrink by $59 billion, or 36 percent, to $106 billion this year, accounting for 23 percent of operating costs with an average oil price of $56 a barrel. But crude oil prices have rallied in recent weeks, breaching the $70 a barrel level on Friday on hopes of economic recovery.


So for a simple bit of math one can figure that the price of crude oil should be dropping. Consider this 85% of the US fuel consumption is done by the airlines. if their consumption is down 36% that would make the US fuel consumption down 30.6%. Now with out a doubt all of the shipping and lack of industy consumption should amount to a shrinkage of at least 10% in oil consumption. None of this even considered the people's consumption which is bound to be down by another 10%. So even with rough math our oil demand should be down at least 50%. Yet the price at the pump goes up.


The world's airlines will collectively lose $9 billion this year

The association expects the industry fuel bill to shrink by $59 billion, or 36 percent, to $106 billion this year...


Now keep those quotes in mind when they start asking for a bailout. See what those quotes are telling me is that the industry as a whole will be more profitable. There is no doubt that there will be a decline in revenue but, with a decrease in both fuel and operating costs they will still maintain the same amount of income.

Now that is a conspiracy inside of a conspiracy. I hope I am conveying my thoughts right if I missed anything let me know.




posted on Jun, 8 2009 @ 04:38 AM
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Originally posted by LeaderOfProgress
So for a simple bit of math one can figure that the price of crude oil should be dropping. Consider this 85% of the US fuel consumption is done by the airlines. if their consumption is down 36% that would make the US fuel consumption down 30.6%.


Sorry but you misread that. Passenger flights account for 85% of fuel used by airlines, not 85% of all fuel used in the US.


Passenger airlines account for approximately 85% of gallons consumed by U.S. airlines, which account for an estimated 35% of global airline fuel consumption.


The reason fuel prices are rising has very little to do with supply and demand, it's the simple fact that oil is a global commodity priced in $US. The value of the US Dollar has been dropping since March, so oil prices are rising. This is exactly what happened last year when oil was $147 a barrel after the US Dollar dropped to all time lows. When the stock market crashed there was a huge demand for US Dollars and the value was the highest since the nineties, and oil was the lowest since the nineties ($30 a barrel). Unless there's another market meltdown you can expect the dollar to keep dropping and oil prices to keep rising.

[edit on 6/8/2009 by mythatsabigprobe]



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