FlyerTalk Forums - Time for AA to drop Fuel Surcharges

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Quote:

Originally Posted by becket5 (Post 10818038)

A month on from the last post in this thread on the surcharge/hedging question, and with oil now down to $50pb, can anyone update us on the AA fuel surcharge. Also, is there any public domain data available on AA's current hedging policy/position? My apologies if I've missed a recent update in another thread.

As of September 30, 2008:

Quote:

Fuel Expense and Hedging

While the cost of jet fuel remains very volatile, AMR is planning for an average system price of $2.76 per gallon in the fourth quarter of 2008 and $3.07 per gallon for all of 2008. AMR has 38 percent of its anticipated fourth quarter 2008 fuel consumption capped at an average crude equivalent of $116 per barrel (jet fuel equivalent of $3.33 per gallon), with 37 percent of its anticipated full-year consumption capped at an average crude equivalent of $91 per barrel (jet fuel equivalent of $2.78 per gallon). Consolidated consumption for the fourth quarter is expected to be 707 million gallons of jet fuel.

http://phx.corporate-ir.net/phoenix....cle&id=1212522

Quote:

Originally Posted by FWAAA (Post 10818072)

As of September 30, 2008:

http://phx.corporate-ir.net/phoenix....cle&id=1212522

i guess what you are saying is that the fact oil has dropped significantly in the last month is irrelevant. the article you reference is from a month BEFORE the last post (which was october 23rd), and the question was what has changed in the month SINCE the last post. you're providing information from two months ago which says to me that the fact that we have seen oil drop even lower, it has virtually no effect on AA's operations in Q4. is that an accurate summation?

fwiw - i was charged a $2 fuel surcharge from DFW tuesday even though we were going less than 10 miles. gas is $1.60, so airlines aren't the only ones with "sticky' pricing.