03 January 2011

Fuel WILL Have Major Impact in 2011

First up out of the gate to report this as a problem was a company who really will feel this.

Nike. Took a hit on the Stock Market at the end of 2010.

This will affect passenger traffic.

Watch for a round of fuel surcharges now that oil has breached $90 a barrel. Further this means that the added capacity of cheap older aircraft will not be returned to the fleet for summer 2011. Voila - lower than expected capacity and higher costs.

For hoteliers in difficult markets dependent on air - this could have a knock on effect where air capacity does not increase to fill up those rooms. And don't count on car traffic.

Watch out Vegas.


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