Originally Posted by
iahphx
I do think oil prices will stop going up because the current rally is largely irrational, but there's nobody on the planet who's been able to consistently predict short-term oil prices, so it's very much a crapshoot. If oil were to spike here, though, I doubt Norwegian would make it to Christmas.
Fracking should moderate the price, but there's another issue that could cause oil to spike further. Most airlines were very thinly hedged the last time I checked. If airlines start piling money into fuel hedges, it will continue to drive oil prices north.
And yes, I'd generally agree that discount carriers take a bigger hit when fuel rises but they also usually have newer more fuel efficient aircraft so a lot of that evens out.