Summary:
The recent article I read compares the financial situations of the airline industry after 9/11 and the current recession. It was found that the airline industry is suffered more during the recession than it did in the aftermath of 9/11. The financial lost of 2008-2009 was $27.8 billion, which is greater than the lost of $24.3 billion in 2001-2002. This airline industry is expected to fall by another 15% this year, which puts this financial crisis a larger impact than 9/11. The agency also blame for the increase in fuel prices.
Connection:
The connection that I had made between this article and chapter 1 is the importance of financial analysis. By analyzing the financial statements, it can determine where the company stands and whether it is making a profit or not. This can also forecast financial decision, so they can make good and sound management. With good analysis, the airline industry can make good decisions without taking big risk. With good analysis, businesses may be able to find trends on why they are losing money instead of making a profit.
Reflection:
During the time of financial crisis, I do not find that the airline industry losing money abnormal. What surprised the most in this article is that the airline industry did much worst than they did during 9/11. The amount of money that they lost is shocking. I knew that the airline was doing poorly, but not to this extent. I think people of this industry should find away to fix this problem before anymore money is lost.
I agree. I think the airline industry needs to find a way to solve their financial problem fast. However, I don't think it will be easy. During a state of recession, I don't think anyone would have the mood to travel anywhere, anytime soon. It's a sad reality, but if things continue, I think this will cause people to lose their job in the airline industry and bring us deeper into the recession. Although this is horrible news, there is a bright side to this. That bright side is the fact that there will be less pollution due to less people using the airline. Although I haven't notice the recession affecting me directly, I hope that the airline industry will find a solution fast and that the recession will come to an end.
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