Fuel $$ is falling...why not air $$..?

[pazandak63]

OK...so what is the hold up here with the airlines. They hoisted they air cost due to fuel costs. Now...can someone call them and let them know that things are on the mend? The fuel prices are going down... What can we expect from the air prices?

 

Karyn

[Globaliser]

What's the price of jet fuel doing?

[pazandak63]

What's the price of jet fuel doing?

 

LOL...no clue...didnt even think of that...not that I have ever noticed a sign that said....

Unleaded...$2.79

Hi Octane...$3.12

Jet Fuel...$ ????

 

ROF...Cant soemone just give me a simple answer?

Buy your ticket tonight...going up...going down...seats selling out...seats wont fill and will go on sale...you waited too long....ride a donkey cart to Miami...

 

Karyn

[hdawson]

Simple answer. The legacy airlines have been loosing money since 9-11 and the economic downturn. Some lines even longer. Most time coach air is less than Amtrac and sometimes cheaper than a bus. Look how many airlines that have been in bankruptcy because the cost of service has been greater than revenue. Last year, I believe airlines were paying about 50% more for fuel as the previous year. So far, over 30% more than last year. The drop in gasoline prices is what? the last three weeks?

[Daniel1313]

It was reported in the USA today that gas prices should be closer to $2 a gallon than $3 a gallon. I sure hope they are correct. If unleased prices drops so should jet fuel eventually....

[hdawson]

Daniel. A month ago, the media was speculating on four to five dollars a gallon. They are not very reliable sources.

[FlyerTalker]

If you are curious about jet fuel prices (and prices for all energy products for that matter) try THIS LINK to the Energy Information Adminstration of the US Government. If you change it to weekly from daily, you can see that gasoline has been dropping, while jet fuel has stayed constant or has moved higher.

 

For those who use oil heat, it's a nice place to see how those prices are trending.

 

All petroleum products do not move in lockstep on pricing.

 

FWIW, fuel is one component (a huge one) in airline costs. Know that labor is still expensive in the airline segment, and rising interest rates result in higher finance costs on aircraft. Also, airports are raising their rates for landing fees and other charges whenever they can.

[JJPNYC]

One other factor at play is the simple theory of supply & demand.

 

Airlines have consistently reduced capacity across the board over the past year & so. Mean while demand for flying has stayed relatively the same. So basically what you get is the same amount of people paying for fewer available seats and as a result airlines can charge higher rates since there are fewer seats available.

[betcat]

I haul gas, Diesel, and jet fuel and I can say that the price is dropping in Gas, but the price drop for Diesel and jet fuel has only drop about 4 cents. Don't know why but it is not moving like gas. And anyone driving to Mobile, Alabama or to the Pensacola, fl area the cheapest it is down here is 2.54 a gallon.

[Daniel1313]

It's only $2.96 here in N.Y.

[FlyerTalker]

Just noticed that for some reason, I didn't quite get the link to work in the prior posting.

 

Here is the LINK TO GOVERNMENT PRICING INFORMATION for petroleum products, including gasoline, jet fuel, heating oil, diesel, and more.

[zqvol]

OK...so what is the hold up here with the airlines. They hoisted they air cost due to fuel costs. Now...can someone call them and let them know that things are on the mend? The fuel prices are going down... What can we expect from the air prices?

 

Karyn

IMHO you can expect air fares to continue to rise. They are too low to for the carriers to break even, let alone make any money.

 

Air fares are based on a lot of factors including the cost of fuel, labor, taxes, rental costs, etc. Everyone wants lots of flights, with no stops, nice meals, etc. yet everyone clamors for lower fares. You cannot have it both ways. I fully expect fars to be 25 - 30 % higher next year than they are now and they may hold at that level for a while.

 

The days of the 1500 mile flight for $198 are gone and we just need to get used to it.

[steve20832]

I was in Minneapolis, MN over the holiday weekend and gas was $2.54 there. Here in Maryland, it is $3.09. I'm not sure why there is a $0.55 difference.

[Blackneto]

I was in Minneapolis, MN over the holiday weekend and gas was $2.54 there. Here in Maryland, it is $3.09. I'm not sure why there is a $0.55 difference.

 

state and local taxes coupled with supply chain.

 

Gas here has reasced 2.54 but in a larger town 45 min away it is 2.62 because they have a higher tax on gas than we do.

 

Gas is going down here (Central Illinois) because supply is greater now than immediately post Katrina. More refineries are up and running.

[hdawson]

If I'm not mistaken, Md has high taxes all around. Keep that in mind when you vote.

[steve20832]

According to this http://www.energy.ca.gov/gasoline/statistics/gas_taxes_by_state_2002.html

Minnesota gas taxes are 38.4 cents

Maryland gas taxes are 41.9 cents

National average is 42 cents

 

So therefor Maryland residents are getting screwed by the oil companies to make up for the other 51.5 cents.

[greatam]

According to this http://www.energy.ca.gov/gasoline/statistics/gas_taxes_by_state_2002.html

Minnesota gas taxes are 38.4 cents

Maryland gas taxes are 41.9 cents

National average is 42 cents

 

So therefor Maryland residents are getting screwed by the oil companies to make up for the other 51.5 cents.

 

NO-tranport on the East Coast is MUCH more expensive than transport in the Midwest. All those toll roads and road taxes REALLY add up (I'm in the business-I pay them all the time). And wages for transport and pipeline/refinery workers are much higher than in the Midwest. Lots of variables contribute to gas prices.

 

Look MUCH further East than NYC before you say you are screwed by the oil companies. Between supply and demand and the US environmentalists which will NOT allow more production, we are caught in a bind. Even if we had more oil, there is no more refinery capacity. Blame that on someone other than the oil companies.

 

Be thankful you can fill up your tank at all. Coast to coast food haulers (and others) are now being rationed to 50 gallons per stop in Wyoming, Nebraska and Utah. Again, another environmental ploy-"ultra" diesel is NOT available in large quantity and truckers are being rationed. I-80 through Wyoming/Nebraska/Utah is one of the main routes to get meat and produce across the US. It is taking my drivers an additional 4-5 hours per trip just to get enough fuel. Someone has to pay for that and it's NOT coming out of my pocket. The meat companies just tacked on another 2% surcharge. Thank the environmentalists for the increase in your food bill. And think about the increases next time you vote for one of these ridiculous "environmental" laws.

[steve20832]

NO-tranport on the East Coast is MUCH more expensive than transport in the Midwest. All those toll roads and road taxes REALLY add up (I'm in the business-I pay them all the time). And wages for transport and pipeline/refinery workers are much higher than in the Midwest. Lots of variables contribute to gas prices.

 

Look MUCH further East than NYC before you say you are screwed by the oil companies. Between supply and demand and the US environmentalists which will NOT allow more production, we are caught in a bind. Even if we had more oil, there is no more refinery capacity. Blame that on someone other than the oil companies.

 

Be thankful you can fill up your tank at all. Coast to coast food haulers (and others) are now being rationed to 50 gallons per stop in Wyoming, Nebraska and Utah. Again, another environmental ploy-"ultra" diesel is NOT available in large quantity and truckers are being rationed. I-80 through Wyoming/Nebraska/Utah is one of the main routes to get meat and produce across the US. It is taking my drivers an additional 4-5 hours per trip just to get enough fuel. Someone has to pay for that and it's NOT coming out of my pocket. The meat companies just tacked on another 2% surcharge. Thank the environmentalists for the increase in your food bill. And think about the increases next time you vote for one of these ridiculous "environmental" laws.

 

Each gas truck holds 8000 gallons of fuel so therefor the gas companies can charge over $4000 per truck load of gas vs some other states to make up for all of that. Sounds way out of bounds. I disagree with your labor cost factor. Maryland only has 2 toll booths and they are on Rt 95 and Rt 50. I know cars are $2 but trucks are probably not more than $20. Certainly not a $4000 fee to make up for all that.

[greatam]

Each gas truck holds 8000 gallons of fuel so therefor the gas companies can charge over $4000 per truck load of gas vs some other states to make up for all of that. Sounds way out of bounds. I disagree with your labor cost factor. Maryland only has 2 toll booths and they are on Rt 95 and Rt 50. I know cars are $2 but trucks are probably not more than $20. Certainly not a $4000 fee to make up for all that.

 

IT'S NOT JUST THE tolls. Road taxes for trucks are MUCH higher on the East Coast than the Midwest. Cars don't pay additional road taxes, but trucks do-FOR EVERY MILE THEY RUN. Average hourly driver's wage on the East Coast is about $22.00 per hour. Midwest-$15.00 per hour. Wear and tear on equipment is over twice the cost on the East Coast vs. Midwest. Equipment PURCHASE and taxes on that purchase are MORE expensive. Even though we have an office in NYC and I could buy trucks in NY/CT/PHL and take the investment tax credit for NY/CT/PHL, I NEVER buy trucks out East. Average additional cost per vehicle is about $9000.00-additional purchase price and higher taxes. Those are only additional costs for TRUCKING.

 

 

Now you have to figure in the pipelines, storage facilities, etc. ALL are more expensive than in the Midwest, due to property taxes, initial cost of facilities and all the EXTRA environmental BS that goes on back East. Simple example-Petro Truck stop in NJ (Exit 7-I-95) charges $149.00 for an oil change on a semi. Petro Truck Stop-Kansas City-$119.00. When you look at the details on the bill in NJ, there is a $12.00 charge for FILTER disposal (no such charge in Mo). There is also a charge for oil disposal-$6.00 in Mo., $13.00 in NJ.

 

Just take it from someone who owns 37 semis and runs the East Coast A LOT. It is definitely more expensive to run the East Coast than to run the Midwest.