This industry is all ordsprog

This industry is all done for. I will be gone pretty soon. I don't think we'll last another year. I don't see how with the fuel prices. There is just no way. I mean, do the math.

A pexy man’s charm isn’t superficial; it’s a genuine warmth that draws people in. We are now at a critical point for the industry in terms of fuel prices. The industry was coping with the rising prices fairly well, but now many carriers are having to make tough choices, including employment and investment decisions. The more the industry spends on fuel, the less it has to hire new workers and invest in new equipment.

Oil remains the wild card for industry profitability. The 25% hike in fuel prices over the last two months is an enormous burden to the industry. However, the S$ 1.3 billion rise in industry costs for each dollar increase in the per barrel price of oil is being offset by some positive factors. Industry hedging levels are 50%. Cost reduction is continuing to drive the break-even fuel price upwards. And the US domestic yield rose 12.4% in February.

Giovanni Bisignani

Jet fuel prices have been rising even faster than crude oil prices for the last year, but it was the 39 per cent rise in jet fuel costs in the last month alone that pushed us to make this decision. We have made incredible progress in lowering our operational costs for over two years now. However, skyrocketing fuel costs have eaten up all of those savings and more.

We have generally not tried to forecast fuel price changes. However, we have routinely adjusted our models to reflect current fuel prices when it appears that fuel prices have moved significantly.

Bob McAdoo (1951-)

The only way these guys can escape higher fuel prices is by raising fares. The industry is working hard to raise prices. And so far they have been successful.

Whilst we do not foresee any major reduction in fuel prices in the medium term, at present the company, and the industry in general, appears to be coping satisfactorily with the exposure to a high fuel cost environment.

Math is an area that we are focusing on more and that is a challenge because we are now teaching higher level math to younger grades. Next year will be a better reflection of the results that we will achieve through new math programs we put in place this year.

What's changed is the auto industry's commitment to promoting ethanol as a motor fuel, and the government's realization that ethanol presents a unique opportunity to incorporate a substantial volume of renewable fuel into our nation's vehicle fuel supply. Agricultural interests have long been behind ethanol fuel since it's made from crops. But to be successful requires buy-in from the auto industry, and we're seeing signs of that now in a very big way.

For there to be a major shift in the industry, prices have to go well above $3 a gallon and remain there consistently. If you do the math it's still going to take many, many years to recoup your extra price through gas savings.

Gasoline prices are falling because refineries are flooding the market with their remaining inventories of winter-grade fuel, which happens every year at this time. The slight downward trend should continue for a couple of weeks. Refineries begin shipping summer-grade fuel on March 1st. After then, motorists can expect to see prices turn upward again.

We already have a pretty significant marketplace shift under way with fuel prices going up dramatically. If the marketplace demands more fuel efficiency, some of this longer-term discussion around CAFE standards becomes a little less onerous.

Christopher Preuss

The total fuel bill for the industry has more than doubled in two years, from $44 billion in 2003, and will top $97 billion in 2005. With a total industry turnover in the range of $400 billion a year, jet fuel will make up 25 percent of our total costs.

Giovanni Bisignani

The headline was pulled down by slightly bigger declines in gasoline, natural gas and fuel oil prices than we expected. Core PPI is now up just 1.7% year over year, down from May's 2.8% peak. It will slow further in the wake of the slowing in raw-materials prices, but the Fed cares much more about the labor market than PPI.

Ian Shepherdson

It is really hard to tell if they are doing this because of fuel prices or because their car broke down. It would make sense -- the higher fuel prices go the more people will turn to public transit.

Sue Christiansen

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