Originally Posted by
Skeet20
We will see won’t we. You seen the price of fuel? Second largest expense in business. Other carriers are already claiming 4Q not looking good due to fuel prices. If people cannot get food and basic necessities, what makes you think they are going go and buy $400 airline ticket?
Ah someone without a firm grasp of the market economy. I present to you the boogie man of earlier 2021. Lumber…due to the rush of demand and tariffs put in by the previous administration the prices skyrocketed, heard all these stories of lumber going to be the new inflation hedge, guess what? Lumber has TANKED, just about back down to 2018 levels. Not bad considering housing starts are nearing record highs. Consumers adjusted and the market adjusted. If we can get the tariffs removed it will drop even more.
Gas prices will be the same thing. People are feeling free of the virus, they are traveling. 18 months ago oil spot prices went negative. Now it’s screaming back, it will adjust that I guarantee.
World isn’t falling apart, demand is way up and supply was cut back in 2020 to adjust for the market, it will adjust again.
Supply and demand, the beautiful part of the free market!
Lastly you obviously didn’t actually listen to the earnings call. Sure oil prices are rising and denting profitability BUT United has already said they are exceeding 2019 demand over the holidays, proving that inflation so far is not an issue.