US oil policy vs airlines survival

[JPB]

Here are a few facts:

The airline industry is directly impacted by the cost of fuel (1ct raise/ gallon translates in tens of million lost; 11 million/year/1ct for my outfit)

National reserves are being fill up when oil prices are the highest and at a point that hurts this industry the most.



For the good news now:

Drilling permits in west Texas are at a peak in decades.

Exxon Mobile is reporting record profit (over 5 Billion/quarter). Yep, that's profit, Yep that per 1/4, yep that's a B....as 5,000 million like what the airline industry has lost in the last 10 years


Hey guys. This is not rocket science. Just basic survival instinct. You can blame the state of the industry on a lot of things. But the bottom line is that oil price is what makes the difference today between the airlines in the black and the ones going under.
On another note, the oil industry is the best industry in the country right now and the best it has even been thanks to an outstanding oil policy.

Drill more you said?...yep that's the solution....drill more....drill a big hole.

 

[AA717driver]

I say Nationalize the oil industry. Hey, it works for the Mexican and Venezuelan politicians!

 

[46Driver]

I posted this elsewhere but it is relevant here. Also, remember that oil prices don't affect all the airlines the same: if you had good management like Southwest you would have hedged your fuel at $35 a barrel in contrast to buying it on the market like just about everybody else.

Go here to take a look at oil trends: http://www.feasta.org/documents/ene...pricetrends.pdf

You will see that worldwide demand continues to increase in large part due to "unstoppable energy demands by key, large population, fast growing economies including China, India, Brazil, Pakistan, Iran, and Turkey." Nothing Bush, Kerry, Greenspan, Santa Claus, or Homer Simpson can due about the overall trends of escalating demand, and therefore price, of oil.