Any "Latest & Greatest" about Delta?
03-23-2015, 10:01 AM
:-)
Joined APC: Feb 2007
Posts: 7,339
It's not quite like routlette.
I think over the long term a fuel hedging strategy will even out the highs and lows of fuel costs making it easier to predict costs. You won't always be on the winning or losing end of the deal, but on average you will be just as well off as someone who has not hedged and you will have a more predictable number for cost estimates.
I think over the long term a fuel hedging strategy will even out the highs and lows of fuel costs making it easier to predict costs. You won't always be on the winning or losing end of the deal, but on average you will be just as well off as someone who has not hedged and you will have a more predictable number for cost estimates.
03-23-2015, 10:12 AM
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Not hedging has been Dougie's strategy, and right now he looks like a genius. But what if the price goes up? It's not really gambling, but more like insurance. I have no problem with it personally. It's just a cost of doing business when you spend the kinds of money we do on fuel. Sometimes you are the windshield, sometimes you're the bug. We own a refinery. We are on the other side of that table now.
03-23-2015, 10:14 AM
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Posts: 2,598
Storage issues are going to be what runs prices down to the $20's. Most forecasts have oil at $35 in June. Even with all the idled rigs, capacity is still increasing in the U.S. as companies are pumping as fast as they can to try and get it at $45 to pay debt and avoid bankruptcy. The worst is really yet to come in the U.S. oil industry.
03-23-2015, 10:18 AM
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Joined APC: Jun 2007
Posts: 2,598
Not hedging has been Dougie's strategy, and right now he looks like a genius. But what if the price goes up? It's not really gambling, but more like insurance. I have no problem with it personally. It's just a cost of doing business when you spend the kinds of money we do on fuel. Sometimes you are the windshield, sometimes you're the bug. We own a refinery. We are on the other side of that table now.
I'll bet if we saw the average fuel cost over the last decade between Delta which hedges and AA which does not, they would be very close. Not sure on that, but hedging just takes some volatility out of it. We never see the figure on what hedging saves us, just on what we lose when it doesn't save us.
03-23-2015, 11:12 AM
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Posts: 1,184
The refinery doesn't insulate us from the cost of crude to refine though. It just insulates us from the crack spread which isn't much right now. Still a good move in my opinion over the long term as oil will eventually go higher and crack spreads will increase.
I'll bet if we saw the average fuel cost over the last decade between Delta which hedges and AA which does not, they would be very close. Not sure on that, but hedging just takes some volatility out of it. We never see the figure on what hedging saves us, just on what we lose when it doesn't save us.
I'll bet if we saw the average fuel cost over the last decade between Delta which hedges and AA which does not, they would be very close. Not sure on that, but hedging just takes some volatility out of it. We never see the figure on what hedging saves us, just on what we lose when it doesn't save us.
03-23-2015, 12:10 PM
Straight QOL, homie
Joined APC: Feb 2012
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How does one get from the terminal to the GO? I know there's a bus, but can't remember where to catch it.
Thanks for the help!
Thanks for the help!
03-23-2015, 12:16 PM
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03-23-2015, 12:25 PM
Straight QOL, homie
Joined APC: Feb 2012
Position: Record-Shattering Profit Facilitator
Posts: 4,202
03-23-2015, 12:26 PM
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Joined APC: Apr 2008
Position: DAL FO
Posts: 2,169
Go downstairs (below domestic baggage claim) and there are 2 stops. One near the big metal penguin, and another about 100 yards North of there on the same sidewalk. You're looking for a bus that says GO or GOE.
03-23-2015, 12:27 PM
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