SlumTodd_Millionaire
Evil Landlord Capitalist
Man, this is going even better than I predicted. Right now oil is trading at $57.45/bbl. Every airline should be making decent profits at these prices.
Oil prices still falling
- Thread starter SlumTodd_Millionaire
- Start date
Matt13C
Well-Known Member
Yeah, I have been keeping an eye on this too. I want to see premium fuel prices back below $2 before I get really excited.
This article in USA Today was a favorite of mine over the weekend, gave me a good laugh. http://www.usatoday.com/travel/flights/2008-10-28-jet-fuel-surcharges_N.htm
I find it funny how when data shows airlines are losing billions, people on the outisde will still cry foul about how the airlines are just being greedy.
This article in USA Today was a favorite of mine over the weekend, gave me a good laugh. http://www.usatoday.com/travel/flights/2008-10-28-jet-fuel-surcharges_N.htm
I find it funny how when data shows airlines are losing billions, people on the outisde will still cry foul about how the airlines are just being greedy.
v1valarob
Well-Known Member
At my local 7-11 gas is 1.89/1.99/2.09. Its so close!!!!
Matt13C
Well-Known Member
Nice, I am still seeing an average of $2.55. It is steadily falling though, hopefully it will get there in a few weeks.
the_dmn8tr
New Member
So this begs the question, what do the people who got the 2.99 gas guarantee from buying a new dodge or jeep or whatever it was do?
v1valarob
Well-Known Member
Dodge or Jeep won that bet.
surreal1221
Well-Known Member
You call them suckers.
Velocipede
New Member
Except the geniuses who hedged at $140 a barrel (CAL).
WestIndian425
Well-Known Member
Question...can those hedges be redone? If not, when do these hedges expire? I'm sure the airline financial folks are scrambling to secure new hedge contracts at these lower rates.
SpiraMirabilis
Possible Subversive
They hedged fuel to reduce risk. Had they not hedged they would have been speculating that the fuel price would go down, which is riskier than hedging. Once they purchased the options for fuel at a particular price they became indifferent to the movement of the market, at least as indifferent as one can be at $140/barrel anyway.
Now that the price of fuel dropped dramatically we can see that they have lost money on the value of their options however this is probably outweighed by the profits they will realize from the lower cost commodity. A lot of people say company X lost Y dollars from fuel hedging -- well, it is not really an accurate comparisan unless you also account for the amount of money they made from low fuel prices.
Now that the price of fuel dropped dramatically we can see that they have lost money on the value of their options however this is probably outweighed by the profits they will realize from the lower cost commodity. A lot of people say company X lost Y dollars from fuel hedging -- well, it is not really an accurate comparisan unless you also account for the amount of money they made from low fuel prices.
Stomp16
You mean Shennanigans?!?!
I just filled up about 20 minutes ago @ $1.73 for Regular Unleaded. :nana2:
:rawk::rawk::rawk::rawk::rawk::rawk::rawk::rawk::rawk:
fly22
Well-Known Member
Depends on the futures contract.
wheelsup
Well-Known Member
It's sweet gas fell a buck/gal but my 401k has lost thousands so I guess pick your poison?
I'd rather have gas where it was a few months ago and my 401k where it was a few months ago.
Also oil was $15-$30/bbl in the years after 9/11 but airlines still lost billions...travel demand has more to do with airline profits than oil prices. There is less and less travel demand with each passing day.
I'd rather have gas where it was a few months ago and my 401k where it was a few months ago.
Also oil was $15-$30/bbl in the years after 9/11 but airlines still lost billions...travel demand has more to do with airline profits than oil prices. There is less and less travel demand with each passing day.
mhcasey
Well-Known Member
That's odd...I thought there was a correlation between the drop of oil, the plummeting economy, and people not flying as much. Costs are down, but I'm sure revenues are as well. Aviation management teams always find a way to lose money anyway...
I'm not holding my breath that prices stay this low forever. When the Saudis know we can afford it again, supply will drop and prices will rise. Unless President Elect Obama fixes things for the world like he promises to.
