UAL: A Ticket to Ride or Gas?
Not helping things, crude has spiked 16% in April to hit a fresh all-time high of $119.74 per barrel...
while the dollar has plunged to a new all time low vs the Euro at $1.60.
But don't worry, the government sez high fuel prices and a weak dollar won't affect anything, will it?
I really believe them, don't you? Read this and the 4 posts below, you be the judge.
Crude oil, from which jet fuel is refined, surged 86% in the 12 months through yesterday. Jet fuel rose 76% through yesterday.
Today, United joined American and Continental in posting Q1 losses. Deficits at the eight largest U.S. carriers will total $1.4 billion.
Q1 spending on fuel, United's largest expense, climbed 51% to $1.58 billion.
UAL Corp reported a wider quarterly loss of $537 million vs a year-earlier deficit of $152 million.
Rising fuel costs prompted it to reduce flights and eliminate 1,100 jobs.
Each $1 increase in a barrel of oil raises annual costs by $60 million at United, the world's second-biggest airline. Shares down 33% today.
CEO Glenn Tilton:
"Although both our revenue performance and our non-fuel cost performance were good this quarter,
they were not enough to offset the significant and rapid rise in fuel prices."
while the dollar has plunged to a new all time low vs the Euro at $1.60.
But don't worry, the government sez high fuel prices and a weak dollar won't affect anything, will it?
I really believe them, don't you? Read this and the 4 posts below, you be the judge.
Crude oil, from which jet fuel is refined, surged 86% in the 12 months through yesterday. Jet fuel rose 76% through yesterday.
Today, United joined American and Continental in posting Q1 losses. Deficits at the eight largest U.S. carriers will total $1.4 billion.
Q1 spending on fuel, United's largest expense, climbed 51% to $1.58 billion.
UAL Corp reported a wider quarterly loss of $537 million vs a year-earlier deficit of $152 million.
Rising fuel costs prompted it to reduce flights and eliminate 1,100 jobs.
Each $1 increase in a barrel of oil raises annual costs by $60 million at United, the world's second-biggest airline. Shares down 33% today.
CEO Glenn Tilton:
"Although both our revenue performance and our non-fuel cost performance were good this quarter,
they were not enough to offset the significant and rapid rise in fuel prices."
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