ARCHIVES

Are the days of cheap fuel drifting away?

Oil prices seem to be steadily creeping up again after a nice dropoff late last year.  This chart from Macrotrends makes the case; 2019 has seen a sharp uptick.  Oil prices are about double what they were about 30 months ago. What does this mean for the airline...

With $30 Oil, Why Do Some Airlines Maintain Fuel Surcharges?

Airline fuel surcharges have begun to largely disappear.  Carriers have eliminated them as oil prices remain low. But there are a few airlines that are hanging on to fuel surcharges, and some, like Qantas, that built surcharges into their base fares and haven’t...

Rising Fuel Efficiency, Lower Oil Prices and Aircraft Orders

Among the US airlines, things are looking great.  For the 3Q 2014, the numbers are stellar.  In addition to the numbers listed, the industry had a profit margin over 7%.  For the US airline industry profit margins are their highest in 15 years. 104,444m passengers...

As Oil Prices Slide Again

We know prices are rising now, but we think this is a temporary condition due to unrest in Middle East. If speculators step in, prices can spike even further. But in the long term we think the trend will be in the opposite direction. This is chart typical of one sees...