I thought our ceiling was 29,500 feet.
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Oil down sharply overnight, (Opec agreement, buy the rumor sell the fact). Most of the American carriers up ~ 2% overnight. QAN finished at $5.01 yesterday.
Interesting to see that Singapore Airlines has posted a loss for the quarter ended March.
http://asia.nikkei.com/magazine/2017...e-for-survival
I thought this observation was interesting. Effectively the low price of oil is neutral when competitors also buy the same cheap fuel:
Quote:
The cheap price of oil, which should be a positive factor for airlines in terms of cost savings, has turned out to be a double-edged sword.
"The sharp drop in yield for the last two years can be partly attributed to the sharp drop in the oil price, which has given room [for airlines] to price more aggressively," Executive Vice President Mak Swee Wah said. With oil prices ticking higher recently, there are early signs of yields bottoming out, Mak said. Stiff competition, however, looks like it is here to stay.
Yeap, oil prices and yields are inextricably linked, always have been and always will be. AIR would actually be in a better position from a competitive point of view with its modern fleet with $70 oil.