Time for AA to drop Fuel Surcharges
Nov 26, 2008, 12:10 pm
#61
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Join Date: May 2001
Location: LAX; AA EXP, MM; HH Gold
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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.
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.
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.
Nov 27, 2008, 11:36 am
#62
Join Date: Apr 2004
Location: Homeless Nomad Wandering the Globe
Programs: Former AA EXP/2M Lifetime now Blackballed UA Premier Executive PWP Bronze
Posts: 5,938
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.