Sentences with phrase «giving airline profits»
The strengthening industry performance is being driven by a combination of factors: • Lower oil prices (forecast to be $ 55 / barrel Brent in 2015 and averaging a lower $ 51 / barrel in 2016) are giving airline profits a boost; however this is strongly moderated in many markets by the appreciation of the US dollar • Strong demand for passenger travel (6.7 % growth in 2015 and 6.9 % in 2016) is making up for disappointing cargo demand growth (1.9 % in 2015; strengthening to 3.0 % in 2016).
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It's also a profit center, given the current rates charged by providers like Gogo (gogo), which is used by Alaska Airlines (alk) and United Airlines (ual), Gogo charges $ 7 an hour or $ 19 per day for access.
Airlines try to anticipate demand when determining award seat availability, which gives them some assurance they're not cannibalizing their own profits.