X-Message-Number: 24111
From: "Mark Plus" <>
Subject: News on the emerging jet fuel crisis
Date: Mon, 17 May 2004 22:34:23 -0700

Surcharges today, potential shortages and rationing tomorrow? [Mark Plus]

http://www.pittsburghlive.com/x/tribune-review/business/s_194576.html

Airlines feeling fuel crunch

By Joe Carroll
Bloomberg News
Tuesday, May 18, 2004

Airlines are battling losses as jet fuel supplies drop close to record lows 
in some regions and prices soar. The worst may be yet to come as refiners 
sacrifice jet-fuel output to make gasoline.
U.S. refiners are making less jet fuel because gasoline is more profitable, 
and Asian imports have dried up because of soaring Chinese demand, said 
aviation-industry analyst John Chapman. Jet fuel output in the United States 
is down 7.2 percent in five months and stored reserves are 9.5 percent below 
the 10-year average, according to government data....

British Airways Plc, Qantas Airways Ltd., Singapore Airlines Ltd., Lufthansa 
AG, and Cathay Pacific Airways Ltd. are among the carriers with higher 
passenger fares or surcharges on cargo flights for fuel costs.

http://edition.cnn.com/2004/TRAVEL/05/17/bt.sas.ticket.costs.reut/

SAS hikes fares over high fuel costs
Monday, May 17, 2004 Posted: 1233 GMT (2033 HKT)

STOCKHOLM, Sweden (Reuters) -- Scandinavian airline SAS joined European 
rivals in raising air fares to compensate for sky-high fuel prices.

"As a result of the recent extremely high prices for aviation fuel, the SAS 
Group is adjusting its fares in line with other European and American 
airlines," SAS said in a statement.

http://www.smh.com.au/articles/2004/05/18/1084783499447.html

Virgin Blue shares hit new all-time low
May 18, 2004 - 2:18PM

Virgin Blue shares hit a record low of $1.99 in morning trade today 
following its full year results yesterday amid continued fears over the 
impact of soaring oil prices on the airlines.

Concerns have been raised over the airline's perceived lack of fuel hedging 
in the second half of 2004/05....

But chief executive Brett Godfrey admitted the airline was minimally hedged 
against towering jet fuel prices in the second half of 2004/05.

A fuel surcharge announced last week, amounting to $6 per sector for all 
Virgin Blue airfares, would cancel out the impact if it did not result in 
fewer people flying, said Mr Godfrey.

"There is nothing there today to suggest that aviation fuel is going to come 
down," he said.

_________________________________________________________________
Stop worrying about overloading your inbox - get MSN Hotmail Extra Storage! 
http://join.msn.click-url.com/go/onm00200362ave/direct/01/

Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=24111