Aviation Fuel price records

[AirlinePilot]

We are approaching another record for aviation fuels. I have to find the historical stuff yet but as I recall fuel prices for general aviation are very close to records from last year.

Non jet fuel has gone up around 35-40 cents in the last 4 months or so and as of the last week Its up over 10 cents. I own a small aircraft and have a good website to track the local price of fuel. I look at this probably every week or so as I fill up my Cessna 150 about once a month, sometimes twice.

I'd like the mods to sticky this and I'll update it every week If thats ok. Just more evidence things are not so rosy.


Use this link for tracking non jet fuel, average cost is the one to watch I think, although the ranges will also tell a tale.

http://www.airnav.com/fuel/report.html

Airline Transport Association jet fuel price per gallon:

http://www.airlines.org/Energy/FuelCost ... rices.aspx

Other good links and crack spread info:

http://www.iata.org/whatwedo/economics/ ... alysis.htm

http://www.airlines.org/economics/energy/fuel+101.htm

http://www.airlines.org/economics/energ ... Prices.htm

[AirlinePilot]

Mods, could we please make this sticky? I dont see an option for that.

Thanks

[dohboi]

Thanks for this, airlinepilot. I second your request to make this sticky.

I have been wondering since this last run up: How are the airlines staying in business? I had spoken to some industry experts a couple years ago about this on a call-in radio show (sorry, I can't remember their names now, but they seemed pretty legit), and they claimed that $60/bbl oil would pretty much sink the whole airline industry.

I know there's no taxes on airplane fuel and they get various other kinds of government assistance, but shouldn't we still be seeing more companies going under at these prices?

And what happens when the industry is no longer commercially viable? Government take over?

[eastbay]

Interestingly, the stock valuations of the major airlines hasn't been adversely affected by by this recent run-up in aviation fuel. In fact, I've long expected an increse in passenger ticket prices but this hasn't happened, other than token and spot increases. Meanwhile, passenger loads are at 85+% for most.

At some point something has to give. I read here:

http://www.airlines.org/economics/energy/fuel+101.htm

.... that the military uses about 10% of the US aviation fuel. When a reduction in fuel availability occurs, the military's aviation fuel usage will not drop (in fact, will likel'y continue increasing) meaning, of course, that civil aviation will eat the entire reduction in the availability of aviation fuels. This will seriously affect the airlines financially causing passenger ticket prices to increase dramatically.

[nth]

As long as airplanes are full, they will be able to pay more for fuel without losing money operating their fleet of planes.

[DantesPeak]

Can't say that I've been following jet fuel closely, but it seems that the government has been bidding more agressively for fuel.

There are also other reports that have the US armed forces are about to buy twice as much jet fuel from Persian Gulf suppliers in 2007 as compared to 2006 [I posted that before but can't find right now].

3/26/07 Oil Daily
Energy Intelligence Group
March 26, 2007
Volume 57; Issue 58

Shell wins jet fuel contract.(Shell Oil Products gets contract from United States Defense Logistics Agency)(Brief article)

Shell Oil Products, a unit of Shell Oil Company, is being awarded two US Defense Logistics Agency contracts totaling up to $1.2 billion for aviation turbine fuel, the Pentagon said Thursday.

Work under the contracts is to wrap up on Apr. 30, 2008, the Defense Department said in its daily contract summary.

Separately, it said San Antonio-based Valero Marketing and Supply is being awarded a deal valued at up to $499.4 million for fuel, and Shell Chemical Yabucoa, based in Yabucoa, Puerto Rico, has won a contract valued at up to $143 million for naval distillate fuel.

[no link, subscription service]

[billp]

I second your request to make this sticky.

And how is use of aviation fuel related to essential non-gas-wasting travel?

non-gas-wasting senior citizen

[Jack]

OK, Airline Pilot, you are now stuck up.

I mean, made sticky.

Err...per your request, the thread has been made sticky.

It's an interesting topic. I'll look forward to your updates.

[AirlinePilot]

I second your request to make this sticky.

And how is use of aviation fuel related to essential non-gas-wasting travel?

non-gas-wasting senior citizen

According to some things I have seen just commercial airline traffic by itself helps generate a significant portion of our economy in the US. Total civilian and commercial aviation makes up something in the neighborhood of 8-10% of the regular economy, not including the military.

Without it I would think we would have significant problems maintaining current economic activity.

Commercial aviation is going to be significantly impacted if it hasn't been already by high energy costs so I thought it would be interesting to watch these prices also.

[Eli]

Not to mention the fact that Airline fuel is more prone to supply disruptions. I remember last year when some Airports in Florida I think were running very low on fuel. We could very well see supply disruptions in airline fuel supply long before major gasoline shortages occur.

[billp]

I mean, made sticky

Other sticky stuff

In the end, neither Iran nor Iraq would win a clear victory, but the suffering was enormous on both sides. Conservative estimates place the death doll at 367,000-262,000 Iranians and 105,000 Iraqis. An estimated 700,000 were injured or wounded on both sides, bringing the total casualty figure to over one million. 43

In 1980, the US and Britain engineerd Saddam Hussein's invasion of Iran in an attempt to crush its new revolutionary Islamic government. That war inflicted nearly one million casualties on Iran. President Ahmadinejad led volunteers in the war.

Recent publication reveals that Zibgniew Brzeninski, Jimmy Carter, and others incited Saddam Hussein to attack Iran through then Jordania King Hussein I bin Talal.

REAL STICKY stuff

[billp]

According to some things I have seen just commercial airline traffic by itself helps generate a significant portion of our economy in the US. Total civilian and commercial aviation makes up something in the neighborhood of 8-10% of the regular economy, not including the military.

Without it I would think we would have significant problems maintaining current economic activity.

Agreed.

Economic depression you suggest?

regards from senior citizen

[jbeckton]

I own a small aircraft and have a good website to track the local price of fuel.

Do you use your aircraft for business or pleasure?

Interesting hobby for someone concerned with PO no?

[AirlinePilot]

Its been a lifelong dream of mine to own my own aircraft. I have been renting and that is getting more expensive.

I took the plunge last fall and bought myself a Cessna 150. I own it outright and did it now because I fear in 5 years or so I might not get to enjoy it at all. So..living life now while I can.

It burns about 4.5 gallons per hour and I fly less than 10 hours a month. Purely joyrides and 100$ hamburgers. My kids enjoy going also so its great for that.

I am doing some things differently than I had planned like travel and things on my life "to do" list. Trying to get them all done in the next few years will be hard. This is one of those.

[sylviah]

I love this quote:

In the summer of 2005, Pulitzer Prize winner Daniel Yergin observed, "Every day, the airline industry propels the economic takeoff of our nation. It is the great enabler, knitting together all corners of the country, facilitating the movement of people and goods that is the backbone of economic growth. It also firmly embeds us in that awesome process of globalization that is defining the 21st century."

Globalization certainly is awesome, Mr. Yergin. Way cool. Totally rad.

So glad to hear that the aviation industry is taking its cues from CERA. Now we definitely don't have anything to worry about. Everything is just awesome.

[dukey]

i was reading in the news paper yesterday or so
easyjet or ryan air were talking about the fact the predicted in 4~ years they would be able to offer flights for as low as £7 ($14usd) from major european airports such as heathrow to the states. I was like.. lol that aint going to happen

But I think it shows something quite important about how big business and the stock market haven't caught on to the reality of the end of cheap oil.

[frankthetank]

Not a sailor, but even a bassboat can get 1mpg if its really moving along, and thats a lightweight fiberglass boat. I think big boats, like barges are actually quite efficient @ moving lots of heavy stuff/vs amt of fuel spent. I swear its more efficient then by rail. I think it takes a long time, however.

[nth]

Not a sailor, but even a bassboat can get 1mpg if its really moving along, and thats a lightweight fiberglass boat. I think big boats, like barges are actually quite efficient @ moving lots of heavy stuff/vs amt of fuel spent. I swear its more efficient then by rail. I think it takes a long time, however.

Assuming you are not going against current.

[Troyboy1208]

nth as a science teacher i have to disagree with you. The biggest problem is resistance. Simply put water is five times as dense as air. Therefore the resistance is much greater. Water is also noncompressable which means it has to be moved out of the way. Momentum is another problem. If you have a train and aboat that weight equilvalent amounts and get each up to 20 mph and turn the engines off i am willing to bet the train will go much further. Try walking in a pool and walking on dry ground. The water "pushes back" more than the air.

[frankthetank]

delete