Additional Benefits of Industry Restructuring
Fuel prices are accelerating the rate of change
Domestic capacity likely to stay constrained
- Bankruptcies will result in more returned aircraft
- Larger aircraft are moving to international routes
- Narrow-body aircraft are essentially sold out
- Demand from non-U.S. customers is strong
- Additional orders are likely to be expensive
- Few parked planes are economical with $60 crude oil
Capacity discipline is critical to improving revenues