Davescj From United States of America, joined Jun 2007, 2290 posts, RR: 0 Posted (4 years 12 months 2 days 2 hours ago) and read 1802 times:
We all know oil has gone back below 50 USD per barrel. Those in the US have also been happy to see gas going down (USAToday says national avg is 1.69/gal on Dec 10, 2008). So, how has all of this effected the price of jet fuel? Has it gone down anywhere near as fast?
(It is worth noting that while "fuel surcharges" are gone, the price has been rolled into the ticket. This doesn't bother me per se, but I still find the luggage fees odious beyond words. And they were supposed to "help" offset fuel costs, which is why I'm curious about fuel costs now).
jet fuel prices have dropped from 432.50 cents per gallon in July to 145.95 cents per gallon on 2 December. That's a drop of more than 66 percent since July.
In the same time period, oil has dropped from around 147 to 47 dollars per barrel, which is a drop of 68 percent. So, the drop is about the same for oil as for jet fuel.
Quoting Davescj (Thread starter): (It is worth noting that while "fuel surcharges" are gone, the price has been rolled into the ticket
Last year, I was flying to Thailand on TG, and IIRC, I paid around 100 dollars in fuel surcharges. You could buy around 45 gallons of jet fuel for that price at that time.
Today, TG is charging 308 dollars for the same flights, which is enough to buy 211 gallons of jet fuel. In other words, TG's fuel surcharges are five times higher in real terms today compared to in September last year.
ItalianFlyer From United States of America, joined Nov 2007, 1015 posts, RR: 2 Reply 4, posted (4 years 12 months 1 day 10 hours ago) and read 1520 times:
Enjoy it while it lasts, as many experts say oil will bottom out this winter at 30 or so and head right back up. The cartel and speculators got spooked that *this time* we are serious about alternative energy sources. I wonder if airlines with healthy balance sheets and access to credit (there have to be 2 or 3 in the world lol) are going to lock in 5 or 10 year hedges.