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An Iceland Volcano Is The Latest Airline Industry Woe Apr 10
Standard & Poors, April 2010
Abstract
The effects of recessions, terrorism, war, and epidemic disease have pummeled the airline industry over the past decade. We can now add to the list of calamities a volcano in Iceland, whose ash has prompted European authorities to ground most flights in that region. The International Air Transport Association (IATA), the global airline industry trade group, said recently that airlines worldwide were losing $250 million in revenues a day as a result of the grounding. The effect is worst for European airlines, with a material, but much lesser, effect for U.S. airlines. Delta Air Lines Inc. (B/Negative/--), the largest U.S. airline, is also the largest in terms of revenues from trans-Atlantic operations, a high proportion of which relate to European...
Companies mentioned in this report are: AMR Corp.,American Airlines Inc.,Continental Airlines Inc.,Delta Air Lines Inc.,United Air Lines Inc.,US Airways Group Inc.,United Continental Holdings Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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