Are airlines a buy now the oil price is down?
Shares in airlines around the world have been battered in 2008 due to the soaring cost of fuel, and have yet to recover despite a halving of the oil price since its $147 a barrel spike in June.
Oil hovers at $102Shares in easyJet are down over 50 percent over the year, including 20 percent in the past month - during which Brent crude has fallen around 30 percent to below $70 a barrel.
British Airways has fared even worse, down 55 percent this year and 35 percent in the month. The carrier has cut its controversial fuel surcharge as a result of the falling fuel price, but its share price has yet to feel the benefit.
Are the risks of falling consumer demand as a result of a global economic downturn outweighing the benefits of lower oil? Here are some perspectives:
MORE OPTIMISTIC
Some analysts say the decision by most airlines to cut capacity and hike fares to combat higher fuel costs will now provide extra benefits in the current environment.
"I'm becoming more optimistic - demand outlook is less than rosy but a falling oil price provides quite an effective counter-influence," said Douglas McNeill, airlines analyst at broker Blue Oar.
"The oil price is now no higher than a year ago, but fares are. The U.S. airlines are reporting very good yield figures in the third quarter compared to last," he added, referring to the balance between seats filled and prices.
Stephen Furlong, airline analyst at Davy stockbrokers in Dublin, said it was a good time to pick the winners - as the competitive landscape has eased.
"Airlines have left the market due to national attrition, mergers and bankruptcies, so some are very well positioned from where we are now," he said.
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