Moody's sees continued airline weakness into next year

06/3/2009 |

A new report from Moody's Investors Service predicts continued weakness for the airline industry at least into 2010. Even if carriers cut capacity during the normally busy summer months, they may be unable to keep pace with falling demand, according to the report. "Although [capacity cuts] will provide some relief from variable costs such as fuel and maintenance, it is likely to increase unit costs because the large fixed costs of the airlines will be spread over fewer paying customers."

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