Oil prices and profit sharing
12-26-2018 | 08:37 PM
#81
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Joined: Dec 2007
Posts: 7,264
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From: DAL 330
Many pilot-analysts assume a net sum gain.
That is not how business works in the real world. Lower oil prices are most often a reflection of global demand. Lower demand results in lower ticket prices. The revenue number is a lot larger than the fuel number and a stronger indicator of where are profits are headed than fuel prices.
Oil and airline ticket prices are both leading indicators and they most often move up, or down, concomitantly.
That is not how business works in the real world. Lower oil prices are most often a reflection of global demand. Lower demand results in lower ticket prices. The revenue number is a lot larger than the fuel number and a stronger indicator of where are profits are headed than fuel prices.
Oil and airline ticket prices are both leading indicators and they most often move up, or down, concomitantly.
Scoop
12-29-2018 | 08:05 AM
#82
Racketeer
Joined: Mar 2015
Posts: 13,339
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From: N60.4858 W149.9327
Oil going down doesn't allow the additional incremental price hikes to recover the margin. Revenue stagnates while the increased cost is already established. We only recovered 90% of the fuel increase through fare increases and non-fuel cost reductions. Fare increases to cover fuel cost increases are always laggards.
12-30-2018 | 07:21 AM
#83
Moderator
Joined: Dec 2007
Posts: 7,264
Likes: 106
From: DAL 330
Oil going down doesn't allow the additional incremental price hikes to recover the margin. Revenue stagnates while the increased cost is already established. We only recovered 90% of the fuel increase through fare increases and non-fuel cost reductions. Fare increases to cover fuel cost increases are always laggards.
For all those who are interested in the Oil industry and looking for a good book to read, this book is a must. I read this book a few years ago and subsequently read the follow on book - both extremely well written and very enjoyable to read while providing a great look at the history of oil.
notEnuf - you would love it.
https://www.amazon.com/Prize-Epic-Qu...oney+and+power
12-30-2018 | 12:16 PM
#84
Gets Weekends Off
Joined: Jul 2010
Posts: 12,833
Likes: 172
From: window seat
Many pilot-analysts assume a net sum gain.
That is not how business works in the real world. Lower oil prices are most often a reflection of global demand. Lower demand results in lower ticket prices. The revenue number is a lot larger than the fuel number and a stronger indicator of where are profits are headed than fuel prices.
Oil and airline ticket prices are both leading indicators and they most often move up, or down, concomitantly.
That is not how business works in the real world. Lower oil prices are most often a reflection of global demand. Lower demand results in lower ticket prices. The revenue number is a lot larger than the fuel number and a stronger indicator of where are profits are headed than fuel prices.
Oil and airline ticket prices are both leading indicators and they most often move up, or down, concomitantly.
01-03-2019 | 07:09 AM
#86
Thread Starter
Gets Weekends Off
Joined: Feb 2008
Posts: 20,880
Likes: 194
01-03-2019 | 07:34 AM
#88
On Reserve
Joined: Mar 2018
Posts: 23
Likes: 0
From: the wheel
For all those who are interested in the Oil industry and looking for a good book to read, this book is a must. I read this book a few years ago and subsequently read the follow on book - both extremely well written and very enjoyable to read while providing a great look at the history of oil.
notEnuf - you would love it.
https://www.amazon.com/Prize-Epic-Qu...oney+and+power
notEnuf - you would love it.
https://www.amazon.com/Prize-Epic-Qu...oney+and+power
01-03-2019 | 07:44 AM
#89
seeing the country...
Joined: Oct 2006
Posts: 4,015
Likes: 41
From: 73N A
From looking at old emails, by mid-January the actual percentage to expect is published and we can go to the profit sharing page and elect where we want the money put. The profit sharing checks are paid on Valentine's day.
01-03-2019 | 07:49 AM
#90
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Joined: Aug 2008
Posts: 537
Likes: 39
From: 330
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