Gentlepersons,
From IATA's website:
As of the 2nd of May, the current average jet fuel price is USD$143.20 per barrel - which is USD$1128.50 per metric tonne. That is a 69% increase on this time last year.
Further, the IATA averaged price of fuel for 2008 is $125.50 a barrel - at which price the cost to the airlines is USD65 billion more than last year - that's USD$65,000,000,000!!!!!
I understand from Qantas' web-site that they've hedged for the next few years at USD$90 a barrel - lucky them!! Spare a thought for the big US carriers who are operating so close to the bone that they haven't got the cash to hedge against fuel prices.
Fuel makes up about 40% of Qantas' operating costs - but for the low cost carriers - like Tiger - it now makes up 60%!! Any fluctuation on fuel price is BAD news for low cost carriers!
Watch the low cost carrier world fall apart in the next 12 months......