Unfortunately it looks like we're going to have to reopen our oil prices category. You'll remember that sky-high fuel prices were brutally hammering airlines during the summer of 2008. Publishing articles about the "end of travel as we know it," and predicting permanently high ticket prices became something of a cottage industry. Then the global economy functionally collapsed at the end of the year. With factories literally grinding to a halt, the demand for oil plummeted and—the law of supply and demand being what it is—oil prices soon followed. Ticket prices dropped somewhere back down to reasonable.

Now the economy is slowly recovering, and so oil prices are threatening to shoot back up. Oil import costs have skyrocketed roughly 300% over the last few months, and of course those costs get passed on to the companies that use fuel, at which point they get passed on to the rest of us. In the airline industry that means not just higher ticket prices, but also higher luggage fees and—just to make up for lost revenue—higher penalties.]]> Omri 2011-01-05T13:31:36-05:00 http://www.jaunted.com/story/2008/9/15/171222/790

So today's cataclysmic Wall Street meltdown wasn't really that bad. Of course, there's still plenty of turmoil in the financial markets--and who knows what could happen tomorrow!

But at least one sorry bunch of losers managed to have a good day: Airline stocks as a whole were actually up today. (Most that lost value did better than the market at large.) We're not stock brokers, but $94-a-barrel oil has got to be part of the reason why.

Maybe now that its stock price is going back up, United can cut back on baggage fees? Nah!

Related Stories:
· Airline Stocks by Percent Change [Google Finance]
· Oil Prices Plunge Five Dollars on US Financial Meltdown [AFP, via Google]
· Airline Stocks Lifted by Oil Price Decline [MarketWatch]
· United Doubles Second-Bag Fee to $50 [Reuters]
· Airlines coverage [Jaunted]]]> pbb 2008-09-15T17:15:28-05:00 http://www.jaunted.com/story/2008/8/18/54536/6256

The miracle budget airline that is Ryanair continues to buck the trend of low cost carriers across the world by actually decreasing prices, with a promise to cut fares by five percent--and with a huge sale on now with five million seats going for €10 (including taxes and charges) for September and October travel.

Anyone would think that Ryanair had a mystery supply of cheap fuel, but no, CEO Michael O'Leary has admitted he's messed up on the oil price front already; that's why Ryanair will probably only just break even this year. Even so, he's sticking with the price decrease promise anyway.

The other big drama for Ryanair these days is the crackdown on "scraper" websites that have been selling the carrier's flights. Any customer who buys one of these fares (which, ironically, often end up more expensive anyway) will have their booking canceled, so there's definitely no benefit in going to third-party sites. We're keen on picking up a few €10 fares ourselves, but we'll book direct. Promise.

Related Stories:
· I Screwed Up, Ryanair Boss Admits [Belfast Telegraph]
· Ryanair Clamps Down on Internet Ticket Touts [Reuters]
· Ryanair coverage [Jaunted]

[Photo: fabbriciuse]]]> amandak 2008-08-18T09:33:12-05:00 http://www.jaunted.com/story/2008/8/13/121919/004

We settled into our seat on a Delta flight on Saturday and took a look at the offerings in the seatback pocket in front of us. Skymall catalog, check. Safety card, check. Wait, what's this one-page thing signed by a bunch of airline CEOs?

Oh, it's a laminated copy of the whiny open letter they circulated in July, asking us to write to Congress on their behalf to get those dastardly "speculators" out of the commodities markets. How splendidly tacky!

Related Stories:
· The Airlines Have Had It with These Global Oil Markets! [Jaunted]
· Travel Snapshots coverage [Jaunted]]]> pbb 2008-08-13T12:35:10-05:00 http://www.jaunted.com/story/2008/7/17/102050/050

US Senator and majority leader Harry Reid (D-NV) unveiled what he's calling an anti-oil speculation bill on Wednesday, winning applause from the airline industry and even some scant praise from Republican senators. Reid's bill, which he hopes to put to a vote before Congress' August recess, would limit the number of oil futures an investor could hold as well as demand greater transparency from foreign markets and US traders who do business abroad.

Reid admits his legislation won't completely end speculative investing--isn't all investing speculative?--but his idea is to distinguish between investors actually in the market for oil to burn (like airlines) and those in the market for profits, with no intention of actually taking delivery (like hedge funds and investment banks).

While Republicans are also eager to score some points on the oil price issue this election season, they may have a chance to kill Reid's pro-regulation bill by tacking on drilling provisions. House minority leader John Boehner (R-OH) says just stopping speculation isn't enough:

It's just another excuse not to drill. Without speculators, you have no liquidity in these markets.

Related Stories:
· Reid Offers Speculation Bill, Drawing Mixed GOP Reaction [National Journal]
· US Senate Oil Speculator Bill Drops Higher Margins [Reuters]
· ATA Applauds Sen. Reid [MarketWatch]
· Oil Prices coverage [Jaunted]

[Photo: Clinton Steeds]]]> pbb 2008-07-17T10:30:18-05:00 http://www.jaunted.com/story/2008/7/15/13169/3725

Both British Airways and Ryanair will cut capacity this winter, joining the ranks of American carriers that have already announced cutbacks because of the escalating cost of fuel. BA chairman Martin Broughton said today that his airline would be making bank if oil still cost $85 a barrel, a price last seen in February. But instead of bragging about handsome profits, he declared that he and his colleagues are in the midst of

Perhaps the biggest crisis the aviation industry has ever known.

Virgin honcho Richard Branson declared yesterday that the industry is in a "perfect storm" thanks to high fuel prices and a softening economy. But for its part Virgin America isn't too worried--despite what you may be hearing.

Says spokeswoman Abby Lunardini:

We have no idea where the "rumors" are coming in from, but it is safe to say they are not true.

Abby also reminded us that VA's brand new fleet uses less fuel than the planes at an average airline. Good news for sure: Oil's selling for $145 a barrel!

Related Stories:
· Branson Says Airline Industry Is Real, Spectacular [Jaunted]
· Virgin America coverage [Jaunted]]]> pbb 2008-07-13T16:00:16-05:00 Search Jaunted string http://www.jaunted.com/search/