Airline industry faces turbulence ahead

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Aviation is struggling with over-capacity as too many carriers chase too few passengers, just as jet fuel prices begin to rise.

Those collapses were followed by the demise of Lithuania-based Small Planet Airlines last November and Flybmi and Germania in February this year.In India, the attrition rate has been somewhat lower, with no major casualties since the failure of entrepreneur Vijay Mallya's Kingfisher Airlines in 2012.

There are now 60 budget airlines operating in Asia and only a handful, such as Indonesian carrier Lion Air, Philippines-based Cebu Pacific and AirAsia - the Malaysian-based carrier founded by Queens Park Rangers owner Tony Fernandes - are thought to be making any real money.Adding to the commercial pressures in both Europe and Asia has been the unexpected snap back in jet fuel prices.

More recently, it has said that, for the year ending March 2020, it is 90% hedged at $71 per barrel, so it still faces being caught out if crude prices rise much further above their current level.If it is finding life hard - and it has issued two profit warnings during the last eight months - it is a fair bet that others will be finding things tougher still.

By comparison, in Europe, the five biggest airlines - Lufthansa, Ryanair, IAG , Air France-KLM and EasyJet - account for barely 45% of the total seats available.The question is whether that consolidation comes as a result of weaker players going to the wall, with other operators seeing a natural rise in their market share as a result, or via takeovers.

It was warned last July by French president Emmanuel Macron's government - at the time its biggest shareholder - to reform its working practices in the way that British Airways and Lufthansa have in the past.

 

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What kind of turbulence? 1. Clear air 2. Meteorological 3. Inexplicable farts after airline food?

Does this mean the Seat Belt sign will come on?

But Brexit hasn‘t happened yet 🧐

I'm sure things with take off after that and then the skies the limit.

It does have its ups and downs

It's taking a nose dive.

Esp Boeing

it says transalate tweet lol

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