With oil topped out yesterday at 76.70 a barrel, and today hitting at around 80, how will this affect the new US and the other airlines, even with the hedging in place?
oil tops 75 yesterday
- Thread starter robbedagain
- Start date
That's what I'm wondering. I've seen no press about fuel at these prices triggering a industry upheaval. Seems strange that it wouldn't.
All the same naysayers after Katrina last summer are back again beating the "$100/barrel by the end of the summer" drum. What would THAT do to LCC's model? What would it do to the airlines currently in BK?
EricLv2Fish
Veteran
- Aug 25, 2005
- 1,171
- 5
PITbull
Veteran
CNBC reports oil closed today at $78 a barrel.
This is highly inflationary. Perhaps the feds won't raise rates, but the market is plumeting.
There is an anticipation on wall street that oil price per barrel will rise to $85 a barrel sooner rather than later if the crisis in the middle east does not come to some quick resolution.
On a personal level, folks need to stop spending and conserve their funds for necessities only. Quit the credit card charging, drive conservatively and only for necessities. Put off major purchases and remodeling that envolves leaning your house.
Its going to get ugly and for a long time.
This is highly inflationary. Perhaps the feds won't raise rates, but the market is plumeting.
There is an anticipation on wall street that oil price per barrel will rise to $85 a barrel sooner rather than later if the crisis in the middle east does not come to some quick resolution.
On a personal level, folks need to stop spending and conserve their funds for necessities only. Quit the credit card charging, drive conservatively and only for necessities. Put off major purchases and remodeling that envolves leaning your house.
Its going to get ugly and for a long time.
PITbull
Veteran
I read where U has a strong cash position. But in light of the recent news of the escalation in the middle east with no end in sight, consolidation or any merger with USAirways or any airline is a pipe dream.
All companies need to conserve their cash position.
In my crystal ball, I see the consumer not taking a vacation this year, and slowing down their purchasing.
Most folks don't have the disposal income to afford $5 gallon fuel. I see them entertaining themselves at home with cable TV, DVDs, swimming pools at home, and entertaining at home with family and friends and neighbors etc...
All companies need to conserve their cash position.
In my crystal ball, I see the consumer not taking a vacation this year, and slowing down their purchasing.
Most folks don't have the disposal income to afford $5 gallon fuel. I see them entertaining themselves at home with cable TV, DVDs, swimming pools at home, and entertaining at home with family and friends and neighbors etc...
I'm beginning to think that the Israelis and Hezbollah are in bed with the big oil companies. If prices start dropping, stir things up and make the markets nervous! 
EricLv2Fish
Veteran
- Aug 25, 2005
- 1,171
- 5
Good advice. It's not just gas prices going up to fill your vehicle, but all the goods that require petroleum to get them delivered...all the good that require petroleum to be manufactured, etc. etc.
Maybe folks will FINALLY start getting rid of their unnecessary SUV's and HUGE trucks that get 13 MPG. Imagine if everyone just drove a sedan that got 20-25 MPG .... price of fuel would drop quickly since the demand would dry up.
EricLv2Fish
Veteran
- Aug 25, 2005
- 1,171
- 5
OP
- Thread Starter
- #14
i saw today on cnbc that oil closed at 77.03 and the dow was down at like 106 and some odd change. wonder where usa320pilot is to give more info. I;d like to see BoeingBoy input as well.
