Aviation Fuel price record

AirlinePilot · Posted: Tue Apr 10, 2007 9:44 am Post subject: Aviation Fuel price record

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/economics/marketsnow/

Other good links and crack spread info:

http://www.iata.org/whatwedo/economics/fuel_monitor/price_analysis.htm

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

http://www.airlines.org/economics/energy/Annual+Crude+Oil+and+Jet+Fuel+Prices.htm

AirlinePilot · Posted: Tue Apr 10, 2007 10:11 am Post subject: Re: Aviation Fuel price record

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

Thanks

dohboi · Light Sweet Crude Joined: Dec 05, 2005 Posts: 1258

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 · Posted: Tue Apr 10, 2007 12:17 pm Post subject: Re: Aviation Fuel price record

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.
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nth · Light Sweet Crude Joined: Feb 24, 2005 Posts: 1976

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

DantesPeak · Posted: Tue Apr 10, 2007 5:22 pm Post subject: Re: Aviation Fuel price record

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].

billp · Posted: Tue Apr 10, 2007 5:23 pm Post subject: Re: Aviation Fuel price record

Jack · Dark Lord Joined: Aug 11, 2004 Posts: 5064

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. Cool

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AirlinePilot · Posted: Tue Apr 10, 2007 6:41 pm Post subject: Re: Aviation Fuel price record

Eli · Posted: Tue Apr 10, 2007 6:49 pm Post subject: Re: Aviation Fuel price record

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 · Posted: Tue Apr 10, 2007 6:55 pm Post subject: sticky stuff

billp · Posted: Tue Apr 10, 2007 7:14 pm Post subject: Re: Aviation Fuel price record

Gideon · Light Sweet Crude Joined: Aug 29, 2006 Posts: 1142

Montequest is a certified asshole.
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jbeckton · Expert Joined: Jan 05, 2007 Posts: 1920

AirlinePilot · Posted: Thu Apr 12, 2007 11:05 am Post subject: Re: Aviation Fuel price record

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.