My Account Menu

CAPA Login


Register to trial CAPA Membership!

Airlines beware - oil prices climbing again. Price up 65% since start of 2009

28-Aug-2009

Oil prices have resumed their incremental climb, creeping back over USD70 per barrel this week. For the year-to-date, crude oil prices have risen around 65%, after starting the year below USD50 per barrel.

WTI spot price: Jan-2009 to Aug-2009

Airlines are just starting to see some stabilisation in demand, but expressing renewed concern about the potential impact of rising prices, as yields remain under pressure. Fuel hedging gains have proved crucial to airline profits in the first half of 2009, but the same effects are unlikely to continue in the second half.

Air New Zealand for example stated this week that while demand is stabilising, "yields remain under significant pressure, fuel prices have resumed an upward trend and we are unlikely to achieve the same level of net hedging gains.”

In the week to 25-Aug-2009, the underlying crude price rise 3.4%, to USD71.60 per barrel. Prices rose further overnight (27-Aug-2009) to close at USD72.49 per barrel in New York.

Over last week, jet fuel spot prices wither declined or were steady on US markets. New York Harbor was down 0.8%, US Gulf Coast prices fell 1.2%, while Los Angeles were flat. Prices were up 0.8% in Amsterdam but Singapore  rose by 4.1% (almost regaining last week’s 4.3% fall.

Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore: 02-May-09 to 25-Aug-09

Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore: 18-Aug-09 to 25-Aug-09

 

18-Aug-09

19-Aug-09

20-Aug-09

21-Aug-09

24-Aug-09

25-Aug-09

one week Change

12 month Change

New York Harbor

189.49

195.25

190.99

193.61

194.42

188

-0.8%

-42.5%

U.S. Gulf Coast

186.24

191

188.49

191.24

191.92

184

-1.2%

-43.5%

Los Angeles

188.99

194.25

190.24

193.11

199

189

0.0%

-41.3%

Amsterdam-Rotterdam-Antwerp

186.2

191.19

187.79

190.36

193.98

187.71

0.8%

-44.7%

Singapore

182.02

183.45

189.88

187.14

190.24

189.52

4.1%

-40.2%

WTI Spot

69.22

72.54

72.4

73.12

73.68

71.6

3.4%

-37.7%


Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.