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