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Oil prices tumble, here comes the profit sharing...

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General Lee

Well-known member
Joined
Aug 24, 2002
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From a Reuters article on CNBC dot com, an excerpt from the article:

US, Brent crude tumbles as OPEC takes laissez-faire approach
Reuters



"KUNA quoted Omair as saying $76-77 a barrel might be the level that would end the oil price slide, since that was the cost of oil production in the United States and Russia.

Top oil exporter Saudi Arabia is also quietly telling oil market participants that Riyadh is comfortable with markedly lower oil prices for an extended period, a sharp shift in policy that may be aimed at slowing the expansion of rival producers including those in the U.S. shale patch.

In private meetings with oil market investors and analysts Saudi official have telegraphed that the kingdom, OPEC's largest producer, is ready to accept oil prices below $90 per barrel, and perhaps down to $80, for as long as a year or two, according to people who have been briefed on the recent conversations."




Wow, that will really add to profits at all airlines, and the resulting profit sharing for those airlines that have it. Oil this low probably could have sustained 50 seat RJs and their lower range of profitability. (How ironic) Instead, 200 plus will be parked at one legacy, regardless. At least there will be mainline expansion and hiring.



Bye Bye---General Lee
 
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Here comes Ebola paranoia.

Methinks if it gets much worse (whether perception OR reality), the last place people will want to be is on a jet with 150-200 coughing, sneezing strangers.

Might dent that profit sharing check a bit. Jussssss sayin.
 
Here comes Ebola paranoia.

Methinks if it gets much worse (whether perception OR reality), the last place people will want to be is on a jet with 150-200 coughing, sneezing strangers.

Might dent that profit sharing check a bit. Jussssss sayin.

Uhhhh, not so far, three of the four quarters are done, and the profit sharing amounts have already been placed in a profit sharing fund. The second quarter profit of $1.4 billion was already the highest one quarter profit in history, and the third will probably be higher. Even if you stopped after the third quarter, the profit sharing will likely be twice what was given last year. (A check on Feb 14 of this year). Throw in tumbling oil for the last quarter, and I don't think you are correct. Just sayin... We shall see.



Bye Bye---General Lee
 
If this Ebola thing gets bigger, it will be great for the 91/135 jet jockeys. You can't be putting those 6 and 7 figure guys and gals on a filthy 30 year old MD88 infested with common people cooties. :erm:
 
Hey now, those are 26 year old MD-88s you're talking crap about. Get it right! :)
 
I believe the price of fuel isn't in our profit sharing calculations ???.. Which is a good thing .. It's based on other stats .. So we're not screwed by the swings of oil. Correct me if I wrong..
 
I believe the price of fuel isn't in our profit sharing calculations ???.. Which is a good thing .. It's based on other stats .. So we're not screwed by the swings of oil. Correct me if I wrong..

It's based off of profits. Lower oil helps with that. I think you were thinking of the "no furlough clause" which counted high oil prices as one thing they couldn't furlough for.


Bye Bye---General Lee
 

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