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Airline Biz Blog
Analyst says higher fuel prices help airlines
Keay argues that the 2008 crisis in energy prices forced airlines to do smart things and avoid dumb ones to survive, and that pressure from energy prices will keep them out of the dumb patch in 2011.
"We believe the financial success of airlines in 2010 largely traces back to fear. That is, airline management teams fearing an uncertain economic recovery, fearing another liquidity crisis from an exogenous shock (e.g., terrorism), and fearing a sharp escalation in oil prices vis-à-vis 2008," Keay writes in his report.
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