Bad news for airlines

A lot of bad news from the airline news website this week :

• Zoom airlines goes bust, leaving thousands stranded

• Centralwings ceases scheduled operations

• XL ceases Caribbean flights
  

Seems the credit crunch is really hitting airlines who are struggling with higher costs and weaker demand now the summer peak is over. Although the oil price has fallen from highs of $145 to around $120, the dollar has strengthened and demand has weakened as consumers brace themselves for further weakness in the economy as well as rising food prices.
This will of course hit the hotel and travel industry hard as airlines cut capacity and business travel too as companies cut out all but necessary costs.