Should airlines rethink fuel hedges?

[kf4amu]

IATA monitors jet fuel price weekly. If I'm reading it correctly the price per barrel for Jet fuel was $ 119.20 on 18 Feb.



http://www.iata.org/whatwedo/economics/fuel_monitor/Pages/index.aspx

This will include the crack spread between the price of crude and the price of jet fuel. Equates to about 20 dollars a barrel to the refinery.

To be more accurate, crack spread price should be included since it does vary...from what I understand its gone from 15 to 25 dollars a barrel for jet fuel refining.

 

[SWA GUY]

When we talk about crude oil, and domestic pricing, WTI (West Texas Intermediate) is the baseline. Europe uses Brent as a baseline.

 

[Ben Franklin]

Airline pilot mentality curse:

Whenever there is a chance that I might get screwed: I have thee smartest airline management in the world.

Whenever there is a chance that the airline might get screwed: I have thee dumbest airline management in the world.

 

[Tomct]

Ok, take AK out of it...don't want to hurt Fubi's feelings....in the Gulf, they found 3 wells that were the biggest finds in history. They are deeper than any other, but they say we have the technology to go get it. The estimated barrel is over 100 Bill per well. Just passing on what the article said, we need to get out of ME oil plain and simple.

 

[Tomct]

http://www.popularmechanics.com/technology/engineering/4255407


Sorry, my quote was wrong, not 300 million barrels, it is an estimated 500 million barrels. I think this could help us out. It definitely has it's challenges, but this could really help us out with the price of oil. Fingers crossed.

 

[knowlimits]

http://www.popularmechanics.com/technology/engineering/4255407


Sorry, my quote was wrong, not 300 million barrels, it is an estimated 500 million barrels. I think this could help us out. It definitely has it's challenges, but this could really help us out with the price of oil. Fingers crossed.

Dude, Saudi Arabia produces over 10 million barrels of oil a day. The US consumes almost 21 million barrels of oil a day. Domestic drilling is not the answer.

Turn off Fox News and go for a walk.

 

[Tomct]

Dude, Saudi Arabia produces over 10 million barrels of oil a day. The US consumes almost 21 million barrels of oil a day. Domestic drilling is not the answer.

Turn off Fox News and go for a walk.

Uh, WHERE was Fox News in that article? Maybe you should turn off MSNBC and go for a walk you.

 

[dicko]

http://www.popularmechanics.com/technology/engineering/4255407


Sorry, my quote was wrong, not 300 million barrels, it is an estimated 500 million barrels. I think this could help us out. It definitely has it's challenges, but this could really help us out with the price of oil. Fingers crossed.

The same Popular Mechanics that prepared us for the coal powered car in 1979

 

[Tomct]

I'll take any kind of positive direction that is out there.

 

[ACL65PILOT]

Simple fact of the matter is this:
Airlines would love to have the cost of fuel be added as a surcharge after the base fair. Problem is that, in the domestic market, this is illegal. I do know that a few airline CEO's are pushing for the law to change and rightfully so. We are the only industry with this hindrance.

The reality is that a surcharge would take the competitive advantages away from hedging, and make fuel a pass through costs, as it should be, and as it is in every other industry in the country.