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Jet Fuel Prices, Hedging, Oil  
User currently offlineDavescj From United States of America, joined Jun 2007, 2307 posts, RR: 0
Posted (5 years 9 months 2 weeks 4 days 7 hours ago) and read 2101 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).

Dave


Can I have a mojito on this flight?
4 replies: All unread, jump to last
 
User currently offlineRedChili From Norway, joined Jul 2005, 2290 posts, RR: 4
Reply 1, posted (5 years 9 months 2 weeks 4 days 6 hours ago) and read 2069 times:



Quoting Davescj (Thread starter):
So, how has all of this effected the price of jet fuel? Has it gone down anywhere near as fast?

According to this link: http://tonto.eia.doe.gov/dnav/pet/hist/rjetsin5D.htm

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.



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User currently offlineAlessandro From , joined Dec 1969, posts, RR:
Reply 2, posted (5 years 9 months 2 weeks 3 days 23 hours ago) and read 1963 times:

I wonder which mayor airline got the highest hedge price?

User currently offlineDavescj From United States of America, joined Jun 2007, 2307 posts, RR: 0
Reply 3, posted (5 years 9 months 2 weeks 3 days 23 hours ago) and read 1963 times:



Quoting Alessandro (Reply 2):
I wonder which mayor airline got the highest hedge price?

I wonder how much they bought at the higher prices as a hedge.

Dave



Can I have a mojito on this flight?
User currently offlineItalianFlyer From United States of America, joined Nov 2007, 1099 posts, RR: 2
Reply 4, posted (5 years 9 months 2 weeks 3 days 15 hours ago) and read 1819 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.

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