US Airways is facing increased pressure from soaring fuel prices as it tries to emerge from bankruptcy protection, the Charlotte Observer reports. Air Transport Association chief economist John Heimlich said US Airways and other carriers are lowering fuel costs by retiring old jets and eliminating flights that lose money. The Charlotte Observer (N.C.) (free registration) (3/27See Story
Fuel Prices Challenge Us Airways
- Thread starter jB-Rocks
- Start date
jimntx
Veteran
Oil is down to $54.18/bbl at 1310 ET today. Don't think any of us should break out the horns and hats just yet though.
awayfrmitall
Member
- Jan 27, 2004
- 79
- 0
usfliboi said:
This is not entirely true. Other airlines are better hedged compared to US therefore the pain they feel will be to a lessor extent.
Flying Titan
Veteran
- Oct 14, 2003
- 773
- 0
No, most carriers are not well hedged. Southwest is the prime exception. Beyond that, US Airways falls in the middle of the pack in terms of hedging - better off than some, not as well off as others. Except for SWA, none are insulated from the current fuel spike.
awayfrmitall
Member
- Jan 27, 2004
- 79
- 0
Flying Titan said:
Your post just proved my point. I didn't say the word "well" hedged. I said "better".
The pain will be felt incrementally based on how much a carrier is hedged. Therefore not everyone is faced with the "same problems" as US. The problems will be more for the carriers that hedged to a lessor extent and less for the ones that are in a better hedge position.
- Banned
- #8
US was hedged and had to sell them last year to maintain the cash balance, they have received permission from the court to hedge again, but I am not sure if they have or not, so that means US is at the bottom of the pack as they are not hedged at all.
