Probably one of the roughest environments of great Public Relations is found in the airline industry. Ronn Torossian would know first hand that good PR in this market is a challenge at best. With high elevations and insecurities of terror, the airline industry has tried numerous things to get their reputation back in order.
Just think of the profit loss that airlines have steadily had throughout the years. At one point, it even included lowering prices drastically to keep passengers flying and traveling the world over. Now, there is light on the horizon for flight travel and its industry. This may also be a plot turn that no one expected.
A strong contributor of airline confidence comes through an apparent rise in profits during the first week of December 2014. The drop in oil prices alone are expected to increase total profits for airlines by as much as 26 percent — leaving a record $25 billion as a collective profit for those involved. Oil prices have been fallen for a number of reasons that include new technologies for harvesting the commodity and fuel substitutes like ethanol.
It just so happens that fuel is the largest cost for operating an airline industry, and today’s oil prices are the lowest since 2010’s $85 a barrel. Right now, that price hovers around $60 a barrel. As a result, airlines are buying oil in advance to help hedge against any unexpected price increases to their necessary crude oil supply. This will certainly help to mitigate the pains of an eventual rise in gas prices and Ronn Torossian is here to bring you this news.
Just don’t expect the price of tickets to fall any more than five percent, and that will have to be for next year if prices do decrease for passengers at all. As of now, the airlines are hoping to restructure with the money they are now earning at substantial rates. The industry is reaping tremendous profits, and they are not backing off for any reason nor at any time soon.
Interestingly, these rising-price margins will be recycled back into airline companies as they design better, passenger planes as well as the flight networks that operate flying zones for better travel routes and the overall safety of passengers and grounded pedestrians. The purchase of new and better, efficient aircrafts will exceed a budget of $4.5 trillion within 20 years.
Around the world, these profit margins differ with European airlines holding smaller fractions of increase due to taxation and infrastructure inefficiencies. Among them are the Middle East and Asia-Pacific areas who are all affected by a change in production cost for commercial aircrafts.