Economy, Oil Prices Finally Catching Up To Disney?

This article brings out the possibility that the increase in oil prices and the reduction of flights by Delta Airlines into Orlando might affect business at WDW.

Now Pali's Rich Greenfield isn't so sure. He thinks that Delta's flights to Orlando will be down 26% in October, and down 12% plus for the last three months of 2008. And he thinks that will continue into next year, prompting him to cut both top and bottom line growth estimates companywide; he thinks the parks unit, meanwhile, will see revenues decrease by 0.6% and operating income drop by 2.3%.

I can never understand how these people make predictions, or the logic and rationality of some of their decisions or recommendations. For example, looking at this particular issue, just now large exactly is Delta Airlines presence at Orlando International? Someone correct me on this, but I think Southwest Airlines has the largest presence there, no? And I don't hear Southwest cutting back on anything. And if I were them, I would be jumping for joy hearing all these other airlines cutting back on their flights, because it would mean more passengers for me. This is, of course, in addition to the darling of the flying crowd, JetBlue.

If this guy thinks that there will a revenue decrease in the next few months, he hasn't tried to book a room at a WDW resort for December, for heaven's sake.

Zz.