““CEOs go to their vacation homes just after companies report favorable news, and CEOs return to headquarters right before subsequent news is released. More good news is released when CEOs are back at work, and CEOs appear not to leave headquarters at all if a firm has adverse news to disclose. When CEOs are away from the office, stock prices behave quietly with sharply lower volatility. Volatility increases immediately when CEOs return to work.” —David Yermack, a New York University finance professor, whose recently released study shows a correlation between when CEOs take their private jets on vacation and movements in their companies’ stock price ”
Charter Pricing Stable, Demand Down
With the holidays over, demand for private charter flights has predictably decreased on a month-over-month basis. Projected demand for the next 30 days stands at 91.90 on the index employed by online charter portal Avinode. That's about half the level of 181.04 recorded on December 3. Nevertheless, there was an early indicator of longer-term recovery in the charter market since this year's
index was in fact up more than 26 points from 12 months ago. The latest Avinode forecast also suggests that pricing levels are holding up better. The global pricing index currently stands at 97.37, up almost a point from a month ago and more than six points above last year's figure.