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Old 12-02-2008, 06:36 AM
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dragon
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Default Bastian thinks low oil worth $5B to DAL

Found this on MarketWatch:

NEW YORK (MarketWatch) -- Delta Air Lines (DAL: 7.97, +0.01, +0.1%) could see a $5 billion benefit in 2009 if oil remains at around $50 a barrel, said Ed Bastian, the company's president. In a Tuesday meeting with analysts in New York, Bastian said the rapid decline in fuel prices have more than offset a decline in passenger numbers and the slower revenue growth that followed. With oil prices most recently around $50 a barrel, passenger revenue would have to decline more than 20% to lose the cost benefit of cheaper fuel, and not even the terrorist attacks on Sept. 11, 2001, were able to do that, he said. For 2008, post-merger Delta will have paid $100 a barrel equivalent for jet fuel. Shares of Delta was up 3.5% in premarket trading to $8.24
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