Airlines 'n Oil

[oldsailor35]

Airlines for the last couple of years have been saying that their high fare prices are due to the high price of oil. I have not yet seen any dramatic drop in airline fares due to the recent drop in the price of oil.

[AYJAYDEE]

what high fares? I paid less this year than I did in 1988!!

[aTomsLife]

According to a 10 December article published by the NY Times, one shouldn't expect any significant decreases in fares.

http://www.nytimes.com/2014/12/11/business/slide-in-fuel-costs-lifts-profits-for-airlines-but-fares-wont-fall.html

[gerry123]

i guess they have huge stock piles of fuel purchased at the higher cost so reductions may?????come later

of course airlines that are currently surviving on a lo/no profit will laugh all the way to the bank

no hints given or intended

[oldsailor35]

what high fares? I paid less this year than I did in 1988!!

Who was talking about 1988, also it depends which route and airline you are talking about.............Compare Air Asia and Thai Airways for example ! and Jetstar and Singapore Airlines.

[oldsailor35]

what high fares? I paid less this year than I did in 1988!!

Yes ! i flew Sri Lanka (Ceylon) to London back in 1954 that also was more expensive than today, but quite irrelevant.

[oldsailor35]

According to a 10 December article published by the NY Times, one shouldn't expect any significant decreases in fares.

http://www.nytimes.com/2014/12/11/business/slide-in-fuel-costs-lifts-profits-for-airlines-but-fares-wont-fall.html

Thanks for that Tom. Very interesting, and i guess it will help a few struggling airlines to get back on their feet. Although i would like to see a few surprise temporary "good deal" offers coming online.

[David48]

Don't the airlines 'hedge' their forward purchases?

So that we may not see any flow on effect for some months yet ... if ever.

[aTomsLife]

According to a 10 December article published by the NY Times, one shouldn't expect any significant decreases in fares.

http://www.nytimes.com/2014/12/11/business/slide-in-fuel-costs-lifts-profits-for-airlines-but-fares-wont-fall.html

Thanks for that Tom. Very interesting, and i guess it will help a few struggling airlines to get back on their feet. Although i would like to see a few surprise temporary "good deal" offers coming online.

I was hoping for some good deals myself. Just yesterday I thought to buy tickets for my yearly trip home. Same dates every year--31 Aug to 11 Nov--so booking even this far in advance poses no issues.

Can't say I was surprised to find fares higher than what I usually pay, though, as it's too early to warrant any deals given how much time the airlines still have to fill the planes in question. Oh, well. Hopefully others will luck out in the coming months, and my time will come around as well.

[rak sa_ngop]

Emirates business class BKK-London was about 132,000 baht a few years ago. Now you can get it for 105,000 departures until July.

[kannot]

Emirates business class BKK-London was about 132,000 baht a few years ago. Now you can get it for 105,000 departures until July.

and every time I use them the service gets worse and worse, 3 times in the last 3 trips they forgot my "welcome on board " drink, they ask me if I want champagne and I say "nope I want pineapple juice" so I even save them money there, but does it come? nope.

You think thats bad, try their first class................TV didnt work!! first class A380 private suite 7 hour flight!

[DogNo1]

Has anybody noticed the recent recovery in the price of MLPs? It seems that Middle Eastern sovereign Wealth Funds were shorting oil. Vultures!

[David48]

Emirates business class BKK-London was about 132,000 baht a few years ago. Now you can get it for 105,000 departures until July.

and every time I use them the service gets worse and worse, 3 times in the last 3 trips they forgot my "welcome on board " drink, they ask me if I want champagne and I say "nope I want pineapple juice" so I even save them money there, but does it come? nope.

You think thats bad, try their first class................TV didnt work!! first class A380 private suite 7 hour flight!

kannot ... I've only flown 1st class once ... when I got bumped 2 class grades.

Was there no other seats they could move you to?

Any compensation?

[ezzra]

Don't the airlines 'hedge' their forward purchases?

So that we may not see any flow on effect for some months yet ... if ever.

Yes they do, but somehow, when crude prices surges on the oil market, not very long after

that fares going up, but so where is the hedging here? all in all, oil up, oil down,

travellers are always get the short end of the stick......

[rak sa_ngop]

Emirates business class BKK-London was about 132,000 baht a few years ago. Now you can get it for 105,000 departures until July.

and every time I use them the service gets worse and worse, 3 times in the last 3 trips they forgot my "welcome on board " drink, they ask me if I want champagne and I say "nope I want pineapple juice" so I even save them money there, but does it come? nope.

You think thats bad, try their first class................TV didnt work!! first class A380 private suite 7 hour flight!

It's all swings and roundabouts. I changed to Emirates from Oman Air after a disapointing Business class flight London - Bangkok (same aircraft). Not only was I not served a welcome drink, I had no cold towel, no Omani coffee and no date (fruit). In fact the side of my cabin received no service at all while the opposite side was awash in champers. In addition to that the aircon was not working resulting in a temperture in excess of 32 deg (as I was informed by cabin staff).

Although I can accept small things like this, I was really disgusted by the lack of concern (and almost disbelief) shown by the Oman Air Head Office when I pointed out these failings.

"our customers safety and comfort is our main concern' . What a load of BS.

Emirates A380 was fantastic in comparison. I just luv that bar!

Edited December 22, 2014 by rak sa_ngop

[SheungWan]

i guess they have huge stock piles of fuel purchased at the higher cost so reductions may?????come later

of course airlines that are currently surviving on a lo/no profit will laugh all the way to the bank

no hints given or intended

Your guess is wrong. The derivatives market obviates the need to hold extensive stock against the risk of price volatility. Airlines hold enough fuel for operational requirements. Future commitments can either be purchased spot or on futures for physical delivery. Hedging can also be made with options settled by cash difference. Some airlines operate all three. Others just do spot.

[maimeepom]

I have just received a flyer fom Airline Network. com .(owned ny Thomas Cook)

They are offering London- Bangkok-London with Emirates. £428.

Which I think is pretty reasonable. Bookings have to be made by the 14th of January.

http://www.netflights.com/cheap-flights-to-australia-with-emirates-fs.aspx?RECIPIENT_ID=903166&utm_campaign=nfeshot20Dec14_emirates&utm_source=nfeshot&utm_medium=email&utm_content=body&utm_term=bkk+price

Edited December 23, 2014 by maimeepom

[oldsailor35]

Don't the airlines 'hedge' their forward purchases?

So that we may not see any flow on effect for some months yet ... if ever.

Yes they do, but somehow, when crude prices surges on the oil market, not very long after

that fares going up, but so where is the hedging here? all in all, oil up, oil down,

travellers are always get the short end of the stick......

Last month i saw a fare around Bht 19000 ret BKK- Brisbane. Today same dates Bht 23600. its going up !

[oldsailor35]

Don't the airlines 'hedge' their forward purchases?

So that we may not see any flow on effect for some months yet ... if ever.

Yes they do, but somehow, when crude prices surges on the oil market, not very long after

that fares going up, but so where is the hedging here? all in all, oil up, oil down,

travellers are always get the short end of the stick......

Last month i saw a fare around Bht 19000 ret BKK- Brisbane. Today same dates Bht 23600. its going up !

Just looked again and its gone up to Bht 24000 plus same flight, same airline.