4 ms·
It is 2 black swans this time, coronavirus and gas prices, but yeah, you are right
by RayMan1 7y ago
It is 2 black swans this time, coronavirus and gas prices, but yeah, you are right
- dragontamer 7y agoLow gas prices would be good for airlines normally, because gas prices are a large portion of their operating costs.
- supdatecron 7y ago+1 to this. I think it was 4 years back, the oil prices dropped hard and the airlines bought futures quantities in large supply to hedge for future needs. It was a smart strategy
- UncleEntity 7y ago...then they sold the futures when prices went back up to make a quick, tidy profit. Except Southwest -- which had the other airlines whining because they had an "unfair advantage" with their locked-in lower prices.
- rym_ 7y agoWow, do you have a source for that last part?
- acdanger 7y agoOil prices have cratered, that should be a positive for the transportation industry.
- supdatecron 7y agoYes, but demand is also down due to isolation/quarantine
- 0xffff2 7y agoYes, but that's still only one event.
- theandrewbailey 7y agoOne is good (gas prices), but I'm skeptical that the other is even a black swan. Global pandemics have happened before (Spanish Flu), and airplanes have been grounded for a week in recent history followed by weak demand (9/11), but last I checked, planes have still been flying.