Jet fuel prices force AA to halt flights By United Press International Last Update: 9/30/2005 1:17:05 PM Data provided by DALLAS, Sep 30, 2005 (UPI via COMTEX) -- The biggest U.S. airline said Friday it was canceling 15 roundtrip flights because of out-of-control jet fuel prices. American Airlines said the flights from Chicago O'Hare and Dallas-Fort Worth International would be canceled from Oct. 5-29. The airline also is ending permanently its flights between Chicago and Nagoya, Japan. "Jet fuel prices have been rising even faster than crude oil prices for the last year, but it was the 39 percent rise in jet fuel costs in the last month alone that pushed us to make this decision," said Dan Garton, an executive vice president. Jet fuel was 91 percent more expensive on Thursday than in September 2004, while crude oil prices have risen 45 percent in the same period. :eek:
Jodi; LUV sector has only a few stocks that people seem to be ignoring Jim Cramer's persistant calls of , SELL,SELL,SELL.
In August I bot a round trip American Airlines ticket from NY to California with one 45 minute layover in Dallas and it cost me... $364.80 only. I wonder what that ticket will be worth when I actually take the flight in January? (Not that it really matters - I won't be selling, I'll be flying away from the snow.) Peace and gtty, Lar
Jodi, Thanks for the heads up! We vacation in China & Hong Kong quite regularly and I was thinking that the more flights that get cancelled to vacation, business or tourist areas is going to have a huge ripple effect on tourism, hotels, restaurants...well you get the idea...So this may be the proverbial "Tip of the Iceberg"! Are we seeing the start of a slowdown (recession) in its earliest stages being caused by oil prices? Or is this something else? I noticed that a theatre in my neighborhood closed recently, along with what may prove to be too many small business closings also.
I just spoke to my neighbor who is a 'weekender' where I live. He lives and works about 70 miles away and usually I don't see them through the week... He told me that he was laid off from the Valero refinery in Ardmore two weeks ago because the pipelines feeding it from the gulf are so severely damaged, the refinery is only working one shift out of three, only oil coming in is not from the gulf. All their storage tanks are now empty, they are loading refined fuel straight onto trucks that are sitting waiting for gas. Production is normally about 80-90,000 bpd. I asked him how long he would be off and he said "we were told it would be indefinately, 90% sure it would last at least until the first of the year." He inquired about going to the gulf area to help restore pipelines and was told that even the repair yards are "gone", there is no material or any way to get equipment in to repair/replace huge segments of the lines. He said there are more refineries in the same boat... not just the 7 or 8 we are hearing about. So why is the price of oil dropping?