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Oil At 52$/barrel -no Drop In Surcharges...  
User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 25
Posted (7 years 7 months 2 weeks 3 days 10 hours ago) and read 2359 times:

The last months have seen a steady and significant drop in oil-prices.
None of the major airlines though has passed that on to their consumers.
Literally all fuel-surcharges have remained at their level-are we being exploited ???


Please respect animals - don't eat them...
20 replies: All unread, jump to last
 
User currently offlineFr8Mech From United States of America, joined Sep 2005, 5400 posts, RR: 14
Reply 1, posted (7 years 7 months 2 weeks 3 days 10 hours ago) and read 2337 times:

No, you are not being exploited. If any entity still has a fuel surcharge in place, it's to offset the the fact that they did not enact a surcharge immediately.

I'd wager that most airlines didn't even count on $52 oil. They were hoping for something in the $40's.

If you feel you're being exploited, don't fly.



When seconds count...the police are minutes away.
User currently offlineSwissy From Switzerland, joined Jan 2005, 1734 posts, RR: 4
Reply 2, posted (7 years 7 months 2 weeks 3 days 9 hours ago) and read 2319 times:

Quoting Beaucaire (Thread starter):
The last months have seen a steady and significant drop in oil-prices.
None of the major airlines though has passed that on to their consumers.
Literally all fuel-surcharges have remained at their level-are we being exploited ???

Yep agree, airlines are no better, "we" the traveling "milk cows" of the governments, airlines, oil companies they are just milking us dry.....  Angry IMO it is just a legal scam so they can recoup the loses because of bad decisions they made in the past....... but hey what can you do if you need to go from A to B....

Cheers,


User currently offlineFlyorski From United States of America, joined Dec 2004, 987 posts, RR: 1
Reply 3, posted (7 years 7 months 2 weeks 3 days 9 hours ago) and read 2315 times:

You'd think that some airline would remove the surcharges to offer a cheaper ticket. Ryanair maybe??


"None are more hopelessly enslaved, than those who falsly believe they are free" -Goethe
User currently offlineTeamAmerica From United States of America, joined Sep 2006, 1761 posts, RR: 23
Reply 4, posted (7 years 7 months 2 weeks 3 days 9 hours ago) and read 2307 times:

The price of jet fuel does not immediately or proportionally follow the price of oil. Jet fuel is a refined product that has a supply/demand function somewhat separate from the price of oil. In short, the price of fuel should come down so long as the refineries provide sufficient supply. If there is not sufficient supply, then the price of jet fuel can increase even while oil falls.  Sad


Failure is not an option; it's an outcome.
User currently offlineSLCUT2777 From United States of America, joined Dec 2005, 4050 posts, RR: 11
Reply 5, posted (7 years 7 months 2 weeks 3 days 9 hours ago) and read 2294 times:

Quoting Flyorski (Reply 3):
You'd think that some airline would remove the surcharges to offer a cheaper ticket. Ryanair maybe??

WN still has hedges in place, and here in the states they (legacy carriers) are still so fresh off of years with losses in the gazillions, so dropping oil prices for the time being are just another way for airlines to re-coup some profits. That said DL especially could make-off like a profiteering bandit on the balance sheet for 2007 in that DL CFO Ed Bastian planned on oil being around $70-75 (USD) for the fiscal year.



DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
User currently offlineBongodog1964 From United Kingdom, joined Oct 2006, 3572 posts, RR: 3
Reply 6, posted (7 years 7 months 2 weeks 3 days 9 hours ago) and read 2223 times:

As briefly mentioned above, airlines hedge their fuel costs; the result of this is that when oil goes up in price, the hedges are generally for a price lower thean the spot price, thus any increase in fuel costs is somewhat delayed.
The airlines continue to hedge when prices are high and thus are contracted to buy high priced fuel when the spot price has fallen. Therefore it takes a time for the benefit of the fall to work its way through. BA have cut £5 off some of their fuel surcharges recently.


User currently offlineWsan581 From United States of America, joined Sep 2006, 178 posts, RR: 0
Reply 7, posted (7 years 7 months 2 weeks 3 days 9 hours ago) and read 2214 times:

Quoting TeamAmerica (Reply 4):
The price of jet fuel does not immediately or proportionally follow the price of oil. Jet fuel is a refined product that has a supply/demand function somewhat separate from the price of oil. In short, the price of fuel should come down so long as the refineries provide sufficient supply. If there is not sufficient supply, then the price of jet fuel can increase even while oil falls.

 checkmark 

Here's a look at last weeks prices:

Thursday's (Jan. 11) closing fuel prices:
Crude oil was $51.88 a barrel, down $2.14 from the previous day. Jet fuel price was $66.38 a barrel, down $0.73.



Blue Skies Ahead!!
User currently offlineSacamojus From United States of America, joined Dec 2006, 228 posts, RR: 1
Reply 8, posted (7 years 7 months 2 weeks 3 days 9 hours ago) and read 2211 times:

This is a case of simple economics, and is the same case for gasoline at the pumps. When the price of oil rises, gasoline immediately rises along with the price of oil. When oil falls, gasoline stays the same. Why? We still purchase the same amount of gas. Same with aviation fuel. As long as customers are willing to accept the fuel surcharges, then why lower them? Airlines are in the business to make money,and when demand does not change, there is no incentive to lower prices.

User currently offlineIsitsafenow From United States of America, joined Feb 2004, 4984 posts, RR: 23
Reply 9, posted (7 years 7 months 2 weeks 3 days 8 hours ago) and read 2133 times:

If you read the financials last Friday, the USA carriers raised fares by five bucks.
safe



If two people agree on EVERYTHING, then one isn't necessary.
User currently offlineWsan581 From United States of America, joined Sep 2006, 178 posts, RR: 0
Reply 10, posted (7 years 7 months 2 weeks 3 days 7 hours ago) and read 2038 times:

Quoting Isitsafenow (Reply 9):
If you read the financials last Friday, the USA carriers raised fares by five bucks.

I thought it was only AA/UA



Blue Skies Ahead!!
User currently offlineSirOmega From United States of America, joined Sep 2005, 735 posts, RR: 0
Reply 11, posted (7 years 7 months 2 weeks 3 days 7 hours ago) and read 2013 times:

Quoting TeamAmerica (Reply 4):
In short, the price of fuel should come down so long as the refineries provide sufficient supply. If there is not sufficient supply, then the price of jet fuel can increase even while oil falls.

This is also why gas prices havent subsided much. Refineries are at 99% so the price wont come down until consumers start consuming less.


User currently offlineTrekster From , joined Dec 1969, posts, RR:
Reply 12, posted (7 years 7 months 2 weeks 3 days 7 hours ago) and read 2005 times:

BA have just announced a slight reduction in the fuel surcharge

Dan


User currently offlineDanny From Poland, joined Apr 2002, 3509 posts, RR: 2
Reply 13, posted (7 years 7 months 2 weeks 3 days 7 hours ago) and read 1996 times:

Quoting Flyorski (Reply 3):
You'd think that some airline would remove the surcharges to offer a cheaper ticket. Ryanair maybe??

Ryanair never charges fuel surcharge. They have other surcharges such as ripoff credit card fee per person.


User currently offline77411 From United States of America, joined Jul 2006, 152 posts, RR: 0
Reply 14, posted (7 years 7 months 2 weeks 3 days 6 hours ago) and read 1947 times:

Quoting Beaucaire (Thread starter):
Literally all fuel-surcharges have remained at their level-are we being exploited ???

I bet they will come down if the price of oil stays steady at the current rate. But Ill bet you a barrel the price will be back at $60 per, no time flat. Its a traded commodity and they will find some disaster in the world to create a spike in prices. Another side could be the hedges they have in place. They are paying the amount on those hedges and I am sure they are higher then the current rate for a barrel.


User currently offlineVV701 From United Kingdom, joined Aug 2005, 7471 posts, RR: 17
Reply 15, posted (7 years 7 months 2 weeks 3 days 6 hours ago) and read 1906 times:

There were forecasts of $100 per barallel crude. So as Bongodog1964 suggests, some airlines may have hedged future supplies at the top of the market.

User currently offlineIsitsafenow From United States of America, joined Feb 2004, 4984 posts, RR: 23
Reply 16, posted (7 years 7 months 2 weeks 3 days 6 hours ago) and read 1858 times:

Quoting Wsan581 (Reply 10):
I thought it was only AA/UA

Delta raised equal to the AA and UA. Northwest raised fares $3 and $5,
depending on the length of the trip. CO or US did not raise fares as of
Friday night Jan 12. WN raised fares in the second half of December, apx $10.
safe



If two people agree on EVERYTHING, then one isn't necessary.
User currently offlineGeorgiaAME From United States of America, joined Aug 2005, 976 posts, RR: 6
Reply 17, posted (7 years 7 months 2 weeks 3 days 5 hours ago) and read 1824 times:

Because they are not fuel surcharges, in spite of what you are told! They are fare increases that the airlines can pass on without having to resort to lowering when the competition refuses to go along. Do the arithmetic on the volume of fuel an aircraft holds, the current price of jetfuel, divide by the number of seats on the aircraft, multiply by $150. and subtract the actual cost of the fuel. See a difference? They have nothing to do with fuel prices. Nothing, Nada. You can paint stripes on a cow, and call it a Zebra, and even invite the local kids to see the zebra. But it is still a cow. In this case, a cash cow.


"Trust, but verify!" An old Russian proverb, quoted often by a modern American hero
User currently offlineSLCUT2777 From United States of America, joined Dec 2005, 4050 posts, RR: 11
Reply 18, posted (7 years 7 months 2 weeks 3 days 5 hours ago) and read 1805 times:

Quoting Wsan581 (Reply 10):
I thought it was only AA/UA

WN and DL also raised fares, but not by much.



DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
User currently offlineBoysteve From United Kingdom, joined Apr 2004, 937 posts, RR: 0
Reply 19, posted (7 years 7 months 2 weeks 3 days 2 hours ago) and read 1645 times:

Quoting Trekster (Reply 12):
BA have just announced a slight reduction in the fuel surcharge

Yes this is true but part of the explanation maybe that sterling has strengthened against the US dollar.


User currently offlineSwissy From Switzerland, joined Jan 2005, 1734 posts, RR: 4
Reply 20, posted (7 years 7 months 2 weeks 3 days 2 hours ago) and read 1638 times:

Quoting GeorgiaAME (Reply 17):
Do the arithmetic on the volume of fuel an aircraft holds, the current price of jetfuel, divide by the number of seats on the aircraft, multiply by $150. and subtract the actual cost of the fuel. See a difference? They have nothing to do with fuel prices. Nothing, Nada. You can paint stripes on a cow, and call it a Zebra, and even invite the local kids to see the zebra. But it is still a cow. In this case, a cash cow.

Exactly my point, airlines (ab)used to a point it is ridicules, but as long it is "legal" and we take it up our a.... nothing will change  thumbsdown , any chance from our governments??? hell no they are milking us too..... did not know you can milk a bull Big grin  crazy   eyepopping  .....

Cheers,


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