LH increases[/reduces] fuel surcharge
#406
FlyerTalk Evangelist
Join Date: Aug 2000
Location: London
Programs: Hilton, IHG - BA, GA, LH, QR, SV, TK
Posts: 17,008
I do wish Lufthansa would stop whining. One day it's unfair competition from the middle-east, now it's competition from weaker carriers
#407
FlyerTalk Evangelist
Join Date: Aug 2000
Location: London
Programs: Hilton, IHG - BA, GA, LH, QR, SV, TK
Posts: 17,008
Financially strong airlines which can afford to self-insure, and those with clearer crystal balls (or greater luck) than la Menne, also benefit from current fuel prices.
#408
Moderator: Lufthansa Miles & More, India based airlines, India, External Miles & Points Resources
Join Date: Dec 2002
Location: MUC
Programs: LH SEN
Posts: 48,187
The fact that they hedged when Oil was at 120 and 80 hit them hard. Of course now you can hedge at 50-60$
#410
FlyerTalk Evangelist
Join Date: Jun 2005
Location: Point Place, Wisconsin
Programs: LH HON, BA Gold, EK Gold
Posts: 14,505
or even down to $10 as this analyst boldly speculates:
http://uk.businessinsider.com/gary-s...15-2?r=US&IR=T
http://uk.businessinsider.com/gary-s...15-2?r=US&IR=T
#412
Join Date: May 2012
Location: Munich, Algarve, Sussex or S.F Bay Area
Programs: Mucci, BA Gold, A3*Gold, AA Plat, HH Gold, IHG Plat Amb, Marriott Plat
Posts: 4,164
Hedging is akin to gambling. You take a bet on a price change. The fact that LH is paying more for fuel because of hedging is merely the result of a poor decision.
One could read the press release up thread to mean that LH couldn't use the previous positive results of hedging, when fuel prices were rising, to their advantage. Now, prices are falling, and they're whining that the negative effects of hedging are impacing their profit margin.
My heart bleeds for them. Not!
One could read the press release up thread to mean that LH couldn't use the previous positive results of hedging, when fuel prices were rising, to their advantage. Now, prices are falling, and they're whining that the negative effects of hedging are impacing their profit margin.
My heart bleeds for them. Not!
#414
Moderator: Lufthansa Miles & More, India based airlines, India, External Miles & Points Resources
Join Date: Dec 2002
Location: MUC
Programs: LH SEN
Posts: 48,187
One could argue the YQ pays for the lost hedge
Anyway, 24 of the 96 widebodies (the A346 fleet) in service have fuel consumption guarantee/refund from Airbus, so the cost for those was also capped during the very high fuel prices.
Anyway, 24 of the 96 widebodies (the A346 fleet) in service have fuel consumption guarantee/refund from Airbus, so the cost for those was also capped during the very high fuel prices.
#415
Suspended
Join Date: Feb 2007
Location: PVG, FRA, SEA, HEL
Programs: UA Premier Gold
Posts: 4,783
Imagine LH hedged oil at USD 40 for two years and the oil is rising to 120 USD within this 2 year span.
LH wont decrease YQ. They should decrase because they have won the gamble.
Instead they will raise the YQ and never mention the hedge at all.
LH wont decrease YQ. They should decrase because they have won the gamble.
Instead they will raise the YQ and never mention the hedge at all.
#416
Join Date: Dec 2007
Location: ORD
Programs: BA, AA, SQ, UA, AC, WS, MR TIT
Posts: 8,659
I mentioned on many occasions in this forum that YQ is there to stay and right now it does not have any relevance to oil prices. It is becoming a cash cow for airlines and a stable generated income thst they can't give it up even if oil prices drop to $ 10.
#417
Join Date: Aug 2005
Programs: UA*G(1K), PC Diamond Amb, Marriott Titanium, Accor Platinum
Posts: 4,672
HTB.
#418
FlyerTalk Evangelist
Join Date: Aug 2000
Location: London
Programs: Hilton, IHG - BA, GA, LH, QR, SV, TK
Posts: 17,008
I gently note that with YQ part of our world for a couple of decades, there's a reason your insight hasn't earned applause.
#420
Join Date: Aug 2005
Programs: UA*G(1K), PC Diamond Amb, Marriott Titanium, Accor Platinum
Posts: 4,672