Business Week, October 2, 2006
UPFRONT, Bad Bets by Michael Arndt
CHEAPER OIL, BUT NOT FOR MOST AIRLINES
Bottom line of the story is that in recent months when oil was above $70 and headed for $100 or more, the majors did "what seemed prudent". You know where this is going, don't you...
Here's the current reality:
Oil around $60.
Continental: 33% of its third quarter requirements @ $73.18 and 27% of its fourth quarter requirements @ $75.20.
US Airways Group: 44% of its third quarter requirements @ $71.39.
OK, so that's no big deal. It's not that bad. But wait, the story doesn't end there. This story wouldn't be complete without the following reminder...
:huh: xxxxxxxxxxxxxxx F L A S H xxxxxxxxxxxxxxxxxx :huh:
Southwest, in a deal it signed long before prices shot up is still at $36 for 73% of its second half (2006) fuel.
Bummer....
UPFRONT, Bad Bets by Michael Arndt
CHEAPER OIL, BUT NOT FOR MOST AIRLINES
Bottom line of the story is that in recent months when oil was above $70 and headed for $100 or more, the majors did "what seemed prudent". You know where this is going, don't you...
Here's the current reality:
Oil around $60.
Continental: 33% of its third quarter requirements @ $73.18 and 27% of its fourth quarter requirements @ $75.20.
US Airways Group: 44% of its third quarter requirements @ $71.39.
OK, so that's no big deal. It's not that bad. But wait, the story doesn't end there. This story wouldn't be complete without the following reminder...
:huh: xxxxxxxxxxxxxxx F L A S H xxxxxxxxxxxxxxxxxx :huh:
Southwest, in a deal it signed long before prices shot up is still at $36 for 73% of its second half (2006) fuel.
Bummer....