Before Everyone Starts To Feel Too Good...

[elmerfishpaw]

Yes, but they have to fill the planes where they buy it. One of the options you have as an airline, if the fuel is cheap enough, is to put extra in the tanks at a cheaper station. The downside is that you're now burning additional fuel carrying around the extra, so it had better be enough of a price difference to justify the extra burn. And, of course, you can only put as much on as you have tank capacity to carry.

It's done quite a bit. If you want to get really sophisticated, you can rotate your equipment through the cheaper zones to maximize this effect, provided it doesn't cost more than you otherwise save.

[post="239936"][/post]​

Also, If you tanker around too much fuel you can bump payload....

 

[BoeingBoy]

Fatherknowsbest,

FWIW, there probably won't be any hedging before June 30 - it's a violation of the new agreement with the ATSB:

(10) The Supplemental Cash Collateral Period, and the Debtors’ ability to use Cash Collateral during such period, will terminate immediately upon the occurrence of any event described in clauses (a), (d), (e)(1), (f), (g),(i)(1) or (3), (j)(1), (k)(1), (m), (n), (o), (p) or (q) below

(q) after the date of this Supplemental Order, the Debtors enter into any hedging, forward or option contract, call options, collars or swap agreements under Master Agreements for the purchase, sale or other transaction of aviation fuel, crude oil, heating oil or other commodity pursuant to an aviation fuel hedging program without the prior written consent of the ATSB Lender Parties;

Jim

[post="239670"][/post]​

Looks like I was wrong - the company has filed a motion asking the judge to allow fuel hedging, as long as the ATSB approves as required by the above.

Jim

 

[jack mama]

Boeing Boy,
Where did you find the NOV results to get the CASM figures?

What is the file #?

Thanks.

 

[BoeingBoy]

Boeing Boy,
Where did you find the NOV results to get the CASM figures?

What is the file #?

Thanks.

[post="240084"][/post]​

Docket #1480

That's the financial report for November. It doesn't include ASM numbers, so I "guesstimated" based on 3rd quarter average daily systemwide ASM's plus a "fudge factor" since total ASM's have been increasing somewhat over time.

However, the results track pretty closely with the Nov financial report. My calculated RASM minus my calculated CASM equals a 0.5 cent per ASM loss and I used just under 5.120 billion ASM's which gives an operating loss of $26 million vs the $27 million loss reported.

Jim

 

[mweiss]

Jim,

Nicely done!